McCaw to pay high fees to banks in LIN purchase
Article Abstract:
Morgan Guaranty Trust Co will receive $78 million in administrative and commitment fees for distribution to the banks that contributed to the financing package that will allow McCaw Cellular Communications Inc to purchase LIN Broadcasting Corp for $3.4 billion. The $78 million figure is considered high, but not outlandish. The fee is particularly high because McCaw asked the banks that agreed to provide the $3 billion credit line to perform complicated procedures in a limited time. Under the agreements, McCaw has the right to borrow as much as $3 billion at one time under a four-year revolving credit line. Amounts outstanding on the fourth anniversary will be converted to a six-year loan.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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McCaw appears to have won fight for LIN; LIN's board urges holders to take sweetened bid giving McCaw control
Article Abstract:
McCaw Cellular Communications Inc will acquire LIN Broadcasting Corp after an extended attempt to take over the diversified telecommunications company. LIN's board of directors voted on Dec 4, 1989 to accept McCaw's improved offer to buy 21.9 million shares at $154.11 each. The value to shareholders would be somewhere between $122 and $140 a share. If the stock purchase goes through, it will culminate a battle that began in Jun 1989 between McCaw and BellSouth Corp for LIN and the significant market share LIN holds in such major markets as Dallas, Los Angeles and Philadelphia. The new company, LIN McCaw, would have a 4.97 percent interest in the burgeoning Los Angeles cellular market.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
User Contributions:
Comment about this article or add new information about this topic:
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