Newspaper article THE JOURNAL RECORD

Western Union Completes Sale of Telex, Electronic Mail Units

Newspaper article THE JOURNAL RECORD

Western Union Completes Sale of Telex, Electronic Mail Units

Article excerpt

UPPER SADDLE RIVER, N.J. (AP) - Western Union Corp., hoping to avoid involuntary bankruptcy, completed a deal Monday to sell its telex and electronic mail businesses to American Telephone & Telegraph Co. for $180 million.

Western Union will use the money to buy back some of its junk bonds, helping ease its crushing interest-payment burden.

Western Union's remaining operations are its money-transfer service, electronic bill-paying service and electronic letter services such as Mailgram.

Western Union will buy back $335 million worth of its high-interest, high-risk bonds at 50 cents on the dollar, the company said. The buyback involves $329 million worth of 19 1/4 percent notes and $6 million of 16 percent notes from investors who accept the offer by Thursday.

Western Union's debt will stand at $311 million after the bond buyback.

The transaction eases the threat of involuntary bankruptcy, which has dogged the company since it missed a $51 million interest payment in June, said Robert J. …

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