Prime Computer has plan to go public, halve its debt and shed computer unit

Article Abstract:

Prime Computer Inc plans to sell shares to the public to reduce debt, eliminate its computer division and give Shearson Lehman Brothers a one-third stake. Shearson is a unit of American Express Co and helped take Prime private in a leveraged buyout by J.H. Whitney & Co in 1989. After the financial arrangements are made, the remaining company will be called Computervision Corp. The company could have annual sales of over $1 billion once it is freed from Prime's unprofitable computer unit. The financial plan involves the sale of 15.8 million shares, at a price between $18 and $20 a share, which would raise up to $316 million. This transaction would pay off about half of Shearson's debt and leave it with 15.3 million shares of Computervision stock.

Planning, Investments, Financial Analysis Software, Strategic Planning, Computervision Corp.

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Prime Computer plans offering to pay part of $570 million owed to Shearson

Article Abstract:

Prime Computer Inc is planning a public offering that will enable the debt-ridden company to pay off a portion of the $570 million it owes to Shearson Lehman Brothers. Shearson in turn will swap the rest of the debt for a major stake in Prime Computer, according to those close to the negotiations. Prime Computer and its holding company currently owe $1.29 billion and have no choice but to recapitalize. The company's losses are largely due to the decline of its minicomputer business and interest on its debt. The holding company reported a loss of $537.9 million in 1991 on revenue of $1.38 billion. Industry analysts and consultants contend that Prime Computer will have a strong potential for a profitable comeback if it can recapitalize.

Financial Report

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Data General, Prime report major losses

Article Abstract:

Data General Corp and Prime Computer Inc, minicomputer manufacturers, report large quarterly losses, as anticipated, while Wang Laboratories Inc expects further work force reductions in Oct 1989. Data General reports a loss of $84.1 million for the fiscal 4th qtr ended Sept 30, or $2.86 a share. The company previously reported an $80 million restructuring charge, on revenue of $357.1 million. For the entire year, the company reports a loss of $119.7 million, or $4.10 a share, on revenue of $1.31 billion. Prime Computer reports a loss of $104.8 million, or $1.85 a share, for the 3rd qtr ended Oct 2, 1989. Wang expects further work reductions of more than 3,000 employees in 1990 in order to streamline the company's operations.

Human resource management, Profits, Minicomputers, Layoffs, Layoff, Wang Laboratories Inc., Data General, Computer Industry, Minicomputer, Reorganization, Profit, DGN, WANC

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