Omnipoint Lands $375 Million in Financing

PCS provider Omnipoint Corporation has reached three arrangements, which in aggregate provide for $375 million of financing over the next 12 months.

The first of the financings -- which closed on December 21, 1998 -- has provided the Omnipoint with $125 million of cash from an unsecured loan (with non-cash pay interest) that can be used for general corporate purposes. The second arrangement is with Siemens Information and Communication Networks, Inc. for $200 million of long-term vendor financing as well as resources for general corporate purposes to be available and drawn during 1999. The third is an expansion of a Nortel Networks line of financing by up to $50 million in working capital.

The $125 million unsecured loan provides for reductions in the interest terms upon the close of a strategic equity investment. This facility can be held for up to five years at the company's option, or it may be called by the company at any time upon payment of a declining call premium. Thus, depending on the strategic partnering deal, Omnipoint may choose to maintain this facility, or to retire or refinance it at any time.