S&P issues credit watch on Freescale bonds; Jewelry Channel joins DISH Network
Austin American-Statesman (subscription), TX
COMPILED FROM WIRE REPORTS
Wednesday, September 19, 2007
SEMICONDUCTORS
S&P warns it might lower rating on Freescale’s bonds
Standard & Poor’s Ratings Services on Tuesday issued a CreditWatch on corporate bonds issued by Austin-based Freescale Semiconductor Inc.
Freescale issued $5.95 billion in debt in November in conjunction with its $17.6 billion leveraged buyout, which was completed Dec. 1.
The CreditWatch was an alert to investors that S&P might reduce its BB- rating for Freescale’s bonds if negative business trends continue at the company.
“The action reflects the company’s depressed profitability and cash flows, resulting in debt leverage well above earlier expectations,” credit analyst Bruce Hyman with Standard & Poor’s said.
Hyman said Freescale’s earnings have been hurt by the weakness in cell phone sales by Motorola Inc., Freescale’s former parent and its largest customer.
“We are expecting some recovery in the September quarter, but I can’t feel comfortable that it is going to be sufficient to offset what we have seen,” Hyman said.
The company had no comment.
MARKETING
Boundless Network acquires Dallas-based distributorship
Austin-based Boundless Network, a promotional product distributor, acquired Footprints Marketing of Dallas, a fast-growing distributorship.
Boundless chief financial officer Gary Kofnovec said the company plans other acquisitions of companies with revenues in the $2 million to $10 million range.
Boundless has 42 employees plus 51 salespeople in offices around the country, and plans to add 35 in Austin in the next two years.
COMMUNICATIONS
Jewelry Channel reaches out to DISH Network audience
Round Rock-based Jewelry Channel joined the DISH Network satellite system lineup. The channel said the move doubled its potential audience to 33 million customers nationwide. It is already seen on Direct TV and cable systems around the country, including Time Warner digital cable in Austin.
The 24-hour channel sells jewelry in a dropping-price auction format. It opened its local studio in April and expects employment to rise from 135 this year to 700 by the fifth year.
It is owned by VGL Group, based in Jaipur, India.
