WinStar Communications Inc, a New York company developing a wireless system for the local loop, has raised $13.5m venture cash from two institutional investors. Funds associated with Everest Capital Ltd put up $7.5m for 7% five-year debt of the wholly-owned WinStar Wireless Inc subsidiary convertible into WinStar Communications common at $7 a share, plus 550,000 warrants and share equivalents. The other $6m came from another institutional investor, which bought 9% preferred stock convertible into common under a formula related to the future market price. WinStar intends to use the proceeds of both transactions primarily to roll out its wireless local communications service, which uses so-called Wireless Fiber links for long distance carriers, competitive access providers, cellular companies, private networks, and business.
