WINSTAR arrangeS $35 Mln CP plan

In a bid to increase its liquidity, Winstar Communications Inc. has arranged for a $35 million accounts receivable securitization financing through BancBoston Robertson Stephens Inc.

Billed by the company as the first such financing for a fixed wireless communications provider, the facility will provide Winstar with commercial-paper based funding through EagleFunding Capital Corp., a multi-seller conduit.

Winstar said it will initially have access to $25 million of the credit line, at a rate of LIBOR plus 150 basis points.

The communications concern said the financing will enable it to "significantly reduce its interest expense and strengthen its capital structure."

- Dave Feldheim