Control Data Drops Plans to Raise Money
Control Data said Tuesday that it has decided to drop plans for raising $300 million and was working out other financial arrangements with its bankers.
An offering of $100 million of preferred shares and a $200-million issue of subordinated notes would not proceed, Control Data said, because results from its peripheral equipment-manufacturing operations “are not improving as was previously anticipated.”
The company said its computer business likely would incur a “sizable operating loss” this year that could substantially exceed the earnings anticipated from its commercial credit unit.
Control Data earned $31.6 million on sales of $2.08 billion in 1984.
Control Data said that revolving credit agreements that it has with its banks were amended in anticipation that it would use payments from the share offering and notes to make repayments on its loans.
The amendments are to expire during the next month and Control Data said it would make alternative financing arrangements “adequate to its needs” in the meantime.