Tulsa World: FYI: Business

MAKE US YOUR HOMEPAGE | Wednesday, February 10, 2010 | WIRELESS

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FYI: Business

By Staff and Wire Reports
Published: 11/12/2009 2:33 AM
Last Modified: 11/12/2009 5:01 AM

Dollar Thrifty sale of stock advances

Securities underwriters have exercised in full their option to purchase an additional 862,500 shares of common stock of Dollar Thrifty Automotive Group Inc. at a public offering price of $19.25 per share, company said Wednesday.

The exercise of the option by the underwriters brings the total shares of common stock to be sold by Dollar Thrifty in the previously announced public offering to 6,612,500.

Dollar Thrifty said it intends to use the net proceeds — expected to be $120 million — from the sale of common stock for general corporate purposes.

Also Wednesday, Standard & Poor's Ratings Services raised its long-term ratings on the Tulsa-based rental car company.

S&P raised Dollar Thrifty's corporate credit rating to "B-" from "CCC," and it removed the ratings from CreditWatch, where S&P placed the company with positive implications on Oct. 21.

S&P also raised the rating on Dollar Thrifty's outstanding $231 million corporate credit facility to "B-" from "CCC." and revised its recovery rating to "3" from "5."

Energy Transfer seeks $1.1 billion pipeline loan

Energy Transfer Partners Inc. is seeking a $1.1 billion senior unsecured revolving credit facility to finance an interstate natural-gas transport project.

"We're on the process of finalizing the terms," chief financial officer Martin Salinas told analysts Tuesday during a call to discuss third-quarter results. The revolver will be guaranteed by the company and by Kinder Morgan Energy Partners LP, he said.

Dallas-based Energy Transfer will not make any additional capital contributions to its Fayetteville Express Pipeline project and would be reimbursed for $79 million in expenditures through September if a loan agreement is completed this month as anticipated, Salinas said.

The 187-mile natural-gas pipeline originates in Arkansas and is a 50/50 joint development with Kinder Morgan.

Hewlett-Packard to buy 3Com for $2.7 billion

Hewlett-Packard Co., looking to expand into a business long dominated by Cisco Systems Inc., said Wednesday it has agreed to buy networking software and equipment maker 3Com Corp. in a deal the companies valued at $2.7 billion.

Palo Alto, Calif.-based HP, the world's largest computer maker, said the economic downturn has been a drag on two of its core businesses, PCs and printer ink.

The 3Com acquisition is the latest move by HP to branch out into other areas. Last year, the company bought Electronic Data Systems Corp., making its high-margin technology services group its biggest revenue and profit generator.

The 3Com products will be folded into HP's own networking equipment business. HP said the deal will add new products to its line and help expand its presence in China.

CD rates unavailable

Due to banks being closed Wednesday in observance of Veterans Day, the weekly CD rate chart could not be compiled for Thursday's newspaper. The rates from local banks will be published Friday.

No Action Line

Action Line, a feature that normally appears in the Business section four days each week, will return Tuesday.

By Staff and Wire Reports

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