Briefs

Englewood, Colo. – Liberty Media Corp. said it plans to raise about $310 million through a rights offering under which it would issue to its shareholders transferable subscription rights to buy Series A and Series B common stock.

According to Liberty, shareholders would get a fraction of a right to buy additional shares for each share they hold. The company said it would use the proceeds for general corporate purposes and to reduce debt. In a statement, Liberty said the subscription price, which has not yet been determined, may be paid in cash or by exchange of senior notes or senior debentures.

Also, the company said that the Internal Revenue Service issued a letter confirming that its spin-off from AT&T Corp. last year qualifies as a tax-free transaction. As part of its agreement with the IRS, Liberty said it would issue about $500 million of its equity within a specified time. Liberty said in a statement that it expects the issuance of stock as part of the rights offering will be in compliance with that agreement.

Seattle – Standard & Poor's lowered its corporate credit rating on Northland Cable Television to "CCC" from "B-plus" last week, citing liquidity concerns and the weak fundamentals in the rural cable industry.

In a statement, S&P said that Northland had a cash balance of $3 million and about $4.7 million available on a $75 million bank facility. Basic subscribers have declined about 4.8 percent since June 30, 2001, to about 111,000 customers. S&P said that cash flow at the company is expected to remain weak due to competition and the loss of basic subscribers.

"Limited liquidity and limited access to capital markets could impact the company's ability to meet increasing debt maturities that commence in 2003," S&P said in the statement.

Sioux Falls, S.D. – LodgeNet Entertainment Corp., a provider of in-room interactive-television services to the hotel industry, said it will accelerate its target date for attaining free cash flow to the third quarter of this year.

To get to free cash flow, LodgeNet will take a two-pronged approach: increasing its required hurdle rates for room-based capital expenditures and moderating its level of room-based capital expenditures to reduce its reliance on external debt financing.

Free cash flow is earnings once capital expenditures and interest payments are made.

"Once we reach net free cash flow, it is our intent to continue to grow our company on a self-funded basis without reliance on additional debt financing," president and CEO Scott Petersen said in a statement.

LodgeNet also reiterated its third-quarter guidance of revenue of between $62 million and $65 million, and cash flow of between $21.5 million and $23 million.