| Ticker: TCGX | 4219 Lafayette Center Drive | |
| Exchange: New York Stock Exchange | Chantilly, Virginia 22021 | |
| Industry: Service | (703) 631-5600 |
| Type of Shares: | Common Shares | Filing Date: | 6/13/96 | |
| U.S. Shares: | 5,500,000 | Offer Date: | 8/9/96 | |
| Non-U.S. Shares: | 0 | Filing Range: | $15.00 - $17.00 | |
| Primary Shares: | 5,500,000 | Offer Price: | $14.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.94 | |
| Offering Amount: | $88,000,000 | Selling: | $0.56 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | - |
| Manager | Tier | Phone |
| Bear, Stearns & Co. Inc. | Lead Manager | (212) 272-2000 |
| Salomon Brothers Inc. | Co-manager | (212) 783-2947 |
| Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/95 | 3/31/96 | 3/31/95 | 3/31/96 | ||
| Revenue: | $215.38 | $91.93 | $45.28 | Assets: | $108.93 |
| Net Income: | $10.77 | $3.28 | $3.54 | Liabilities: | $93.23 |
| EPS: | Equity: | $15.70 | |||
Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year, unaudited figures are partial year | |||||
| Business Description |
| Telco is a rapidly growing switch-based provider of domestic and international long distance telecommunication services primarily to residential customers in the United States. The majority of the Company's customers access its network by dialing a unique carrier identification code before dialing the number they are calling. Using a CIC Code to access the Company's network is known as "casual calling" because customers can use the Company's services at any time without changing their existing long distance carrier. The Company markets its long distance services under two brands, each with a unique CIC code: Dial & Save and the Long Distance Wholesale Club, and prices its services at a discount to the basic "1 plus" rates offered by the three major long distance carriers: AT&T; Corp., MCI Communications Corporation and Sprint Corporation. During April 1996, the Company provided long distance services to approximately 2.6 million customers in 37 states and the District of Columbia. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay amounts outstanding under capital leases. The remainder would be devoted to working capital and for general corporate purpose requirements, including possible acquisitions. |
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