Prime Computer has plan to go public, halve its debt and shed computer unit
Article Abstract:
Prime Computer Inc plans to sell shares to the public to reduce debt, eliminate its computer division and give Shearson Lehman Brothers a one-third stake. Shearson is a unit of American Express Co and helped take Prime private in a leveraged buyout by J.H. Whitney & Co in 1989. After the financial arrangements are made, the remaining company will be called Computervision Corp. The company could have annual sales of over $1 billion once it is freed from Prime's unprofitable computer unit. The financial plan involves the sale of 15.8 million shares, at a price between $18 and $20 a share, which would raise up to $316 million. This transaction would pay off about half of Shearson's debt and leave it with 15.3 million shares of Computervision stock.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Prime Computer plans offering to pay part of $570 million owed to Shearson
Article Abstract:
Prime Computer Inc is planning a public offering that will enable the debt-ridden company to pay off a portion of the $570 million it owes to Shearson Lehman Brothers. Shearson in turn will swap the rest of the debt for a major stake in Prime Computer, according to those close to the negotiations. Prime Computer and its holding company currently owe $1.29 billion and have no choice but to recapitalize. The company's losses are largely due to the decline of its minicomputer business and interest on its debt. The holding company reported a loss of $537.9 million in 1991 on revenue of $1.38 billion. Industry analysts and consultants contend that Prime Computer will have a strong potential for a profitable comeback if it can recapitalize.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Data General, Prime report major losses
Article Abstract:
Data General Corp and Prime Computer Inc, minicomputer manufacturers, report large quarterly losses, as anticipated, while Wang Laboratories Inc expects further work force reductions in Oct 1989. Data General reports a loss of $84.1 million for the fiscal 4th qtr ended Sept 30, or $2.86 a share. The company previously reported an $80 million restructuring charge, on revenue of $357.1 million. For the entire year, the company reports a loss of $119.7 million, or $4.10 a share, on revenue of $1.31 billion. Prime Computer reports a loss of $104.8 million, or $1.85 a share, for the 3rd qtr ended Oct 2, 1989. Wang expects further work reductions of more than 3,000 employees in 1990 in order to streamline the company's operations.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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