Bell Atlantic Plans to Issue Exchangeable Notes
December 22, 1997
NEW YORK -- Bell Atlantic (NYSE:BEL) announced today that it plans to
issue approximately $2.6 billion in exchangeable notes for general
corporate purposes. The notes will have a medium-term maturity of five
to seven years and will be exchangeable into shares of Telecom
Corporation of New Zealand (TCNZ), with the exchange price established
at a premium to the TCNZ share price at the time of the offering.
The notes will be non-callable for a period of at least three years,
and will not be exchangeable by investors for an initial period of 18
months. Upon exchange by investors, Bell Atlantic will retain the
option to settle in cash or by delivery of shares.
Proceeds from the offering will be used to enhance Bell Atlantic's
balance sheet as the company pursues growth opportunities in its
regional landline, global wireless and international businesses.
Bell Atlantic owns 24.95 percent of TCNZ, or about 437.2 million
ordinary shares. It is anticipated that the amount of debt issued
will be supported by these current shareholdings.
The timetable for the issue may be subject to market activities and
approvals of parties other than Bell Atlantic. Bell Atlantic will
coordinate its activities with TCNZ management.
Bell Atlantic has not yet determined whether to register the notes
under the Securities Act of 1933. The notes may not be offered or
sold in the United States without registration or an applicable
The new Bell Atlantic - formed through the merger of Bell Atlantic and
NYNEX - is at the forefront of the new communications, information and
entertainment industry. With 40 million telephone access lines and
5.8 million wireless customers worldwide, Bell Atlantic companies are
premier providers of advanced wireline voice and data services, market
leaders in wireless services and the world's largest publishers of
directory information. Bell Atlantic companies are also among the
world's largest investors in high-growth global communications
markets, with operations and investments in 21 countries.