Global Crossing Plans Sale of Tracking Stock

Global Crossing Ltd. said its sale of shares linked to its GlobalCenter Web-hosting services unit could raise as much as $1.04 billion before expenses. The company, which has executive offices in Beverly Hills, said in a filing with the Securities and Exchange Commission that it expects to sell 57.5 million of the tracking shares for $16 to $18 apiece, raising between $920 million and $1.04 billion. Based on that price range, the unit would have an initial market value of between $4.66 billion and $5.24 billion. The offering represents a 20% stake in GlobalCenter. GlobalCenter will use $725 million of the proceeds to expand its data facilities during the next 12 to 18 months and will decide how to use the remaining proceeds later, according to the SEC filing. Global Crossing plans to list the GlobalCenter tracking shares on Nasdaq under the symbol GCTR. The parent’s shares closed unchanged at $28.56 on Nasdaq.