LITTLE ROCK — Bonds to help fund
Windstream deals
Little Rock-based Windstream Corp. on Tuesday said it will issue $400 million in corporate bonds to help finance the recent purchases of Ephrata, Pa.-based D&E Communications and Lexcom Inc. of Lexington, N.C.
Windstream, a voice and broadband Internet provider, announced the $330 million D&E purchase in May and the $141 million purchase of Lexcom this month.
Windstream had announced plans to help finance the purchases with cash or borrowing on its revolving line of credit.
But using the bonds instead will allow the company to preserve cash and revolver borrowing for future opportunities, said Rob Clancy, Windstream's treasurer.
The company expects the offering to be completed next month. The 7.88 percent notes are due in 2017.
Windstream wants to decrease the amount of debt due in 2013, when about $2.2 billion of debt matures. The changes are unrelated to the purchase of D&E or Lexcom, Clancy said.
Standard & Poor's gave the bonds a BB rating, a predominantly speculative rating.
The agency reaffirmed Windstream's BB+ corporate rating, but the outlook is negative.
Fayetteville firm
gets Army contract
SFC Fluidics LLC received a $5 million contract from the U.S. Army to develop a traumaticbrain-injury diagnostic device, the Fayetteville firm said Tuesday.
The contract is with the Army's Congressionally Directed Medical Research Program.
More than 1.5 million Americans suffer head injuries each year, including many who have served in wars in Iraq and Afghanistan.
The hand-held device is to begin clinical trials for approval from the U.S. Food and Drug Administration in 2013.
13 decliners lower state index 1.04
The Arkansas Index, a price-weighted index that tracks the largest public companies based in the state, fell 1.04 to 160.44 on Tuesday.
"Despite hopeful signs from a report showing the biggest gain in home prices in four years, U.S.
stocks finished lower as shares of technology and energy producers moved lower," said Chris Harkins, senior vice president and managing director of Delta Trust Investments Inc. in Little Rock.
"The Arkansas Index slumped as 13 stocks declined, four moved higher and one remained unchanged," he said.
The index was developed by Bloomberg News and the Arkansas Democrat-Gazette with a base value of 100 as of Dec. 30, 1997.
Business, Pages 25 on 09/30/2009