Telex to Wall Street:
“Give Me Just a Little More Time…”
By Chris Doering, Marketing Partner
Dynamic Market Systems

 …and our love will surely grow, as the Chairmen of the Board sang waay back in the day (they hit #1 for a week in 1970 with that one). They may not be humming that particular oldie at Telex HQ. In fact, there’s not likely to be much musical vocalizing of any kind in Burnsville, MN or in Cherry Hill, NJ, where Greenwich Capital Partners is based. Watching the faxes, checking email and the cellphone’s answering machine, yes. Humming, no.

The original deadline for the conversion of most of Telex’ $350 million plus debt into equity was Friday October 12. But on Monday, Telex “extended the expiration date for its previously announced Exchange Offer and Consent Solicitation in connection with its proposed debt restructuring plan,” according to a recent press release, which goes on to state that “Telex currently anticipates that decisions… will be made during the week of October 15th.” As of Monday the 15th, Telex had received tenders for about $27.5 million of it 10.5% Senior Subordinated Notes along with $18.5 million of the 11% Senior Subordinated Notes. The Industry Biz abacus is a little rusty, but it doesn’t look like that’s enough “to significantly reduce Telex’s outstanding debt, increase its financial flexibility and improve its cash flow,” to quote the press release again.

Whether the delay in reaching closure with its creditors has anything to do with the recent disruptions on Wall Street is anyone’s guess. Until the 19th, Telex and Greenwich Capital will have “Friday on My Mind” just like the Easybeats did in 1967. But wait: didn’t Steely Dan do a song about a Friday?