Hyperion Sets $200M Issue2/21/1999 7:00 PM Eastern
Coudersport, Pa. -- Hyperion Telecommunications Inc., the
telephony subsidiary of Adelphia Communications Corp., will issue $200 million in senior
subordinated notes, due 2007, to institutional buyers.
Hyperion said it will use the proceeds of the offering to
fund the acquisition of interests held by its local partners in certain telecommunications
networks, for capital expenditures in its networks, working capital and general corporate
The debt offering comes at a time when Hyperion is making
moves to gain full ownership in its fiber optic telephone networks. Most recently the
company had bought out MediaOne Group's interest in a fiber optic network in
Richmond, Va. and Jacksonville, Fla.
Hyperion's other telecom partnerships include networks
in Philadelphia (with PECO Energy); in Baton Rouge, La., Little Rock, Ark., and Jackson,
Miss. (with Entergy Corp.), and smaller partnerships in Wichita, Kans., and York, Pa.
According to Hyperion's third-quarter financial
report, the company now owns about 63 percent of its fiber optic network.
Hyperion's third quarter revenues increased 201.9 percent
to $15 million compared with the same period in the prior year and its operating cash flow
deficit increased 437.6 percent to $8.1 million compared with the same period in the prior
year. As of Dec. 31, Hyperion had sold 133,686 access lines of which 110,005 were
Hyperion provides telephony service in 22 markets in the
Eastern U.S., and plans to expand to an additional 50 markets by the year 2001.
Hyperion has created a 9,000-mile fiber optic network along
the East Coast, through its own construction and acquisition of networks owned by Williams
Cos., Qwest Communications Inc., MediaOne and others.