RCN renegotiating debt

After posting narrower fourth-quarter losses, RCN announced Friday it is trying to negotiate better terms with its lenders over its $1.9 billion in debt.

RCN, which runs local exchange, data and cable services, reported a loss of $159.7 million for the fourth quarter, almost half of the $296 million loss it posted the same period last year. RCN also increased its network connections by 35% in 2001, and grew its revenue by 32%. Company officials said RCN became cash-flow positive in Boston, its largest market, three months ahead of projection.

CEO David McCourt said one of the competitive carrier’s biggest accomplishments was paying down its debt by $816 million, generating a $409 million gain in the fourth quarter.

But McCourt said that there is no guarantee RCN can reach favorable terms with its lenders, and therefore doesn’t know what the company’s debt obligations will be this year. While negotiations are ongoing, McCourt said, RCN wouldn’t give any guidance for the current year.

For year 2001, RCN reported a net loss of $836.5 million off of pro forma revenues of $536.2 million. Capital expenditures for the year were less than $617 million.

“In what was clearly a challenging economic environment, RCN kept its focus on its core strategy of bringing customers onto our own network, and at the same time reduced spending, cut EBITDA losses, and improved the balance sheet,” McCourt said.