Broadwing gets $200 million in financing

Broadwing Communications revealed yesterday that it will receive $200 million in financing from Goldman Sachs to help pay down the service provider’s bank debt, which caused its stock price to soar up $1.35 or 46.6% to $4.25.

So far today, the stock is holding tight, although it was down $0.24 or 5.69% to $3.98 in late morning trading.

Broadwing will receive the financing as senior subordinated discount notes that will come due in 2009. The deal is contingent upon Broadwing successfully renegotiating its current credit facility and other conditions and is expected to close in the first quarter of 2003.

The provider has also hired Banc of America Securities and Lehman Bros. to serve as financial consultants. --Liane H. LaBarba, senior editor