Infomercial Co. To Tap Market
June 14, 1999
A company called E4L, a firm that has been on the move in the past couple of months, is preparing to join the high yield game.
The firm, a producer of infomercials that sells its products through television, radio and the Internet, told investors last week that it plans to spend $200 million this year, with $120 million of that in the U.S., according to market sources.
To raise this capital, E4L plans to access the high yield market. Slated for later this year is a $150 million to $200 million issue - the company's first debt offering - as well as an initial public offering. The bond is expected to be sold under Rule 144A.
The IPO essentially will be a spin-off of a newly formed joint venture called BuyItNow.com, an Internet shopping Web site. E4L is the majority shareholder of the venture, with 51.5% ownership. BuyItNow Inc. and Clear Channel are the other companies involved in the venture, with 43.7% and 4.7% ownership stakes, respectively. The three companies formed their venture just last month.
BuyItNow.com was designed to be used as an electronic product sales base for the company's infomercials, with the web site's 1-800 ordering telephone number being flashed on the television screen at regular intervals during the infomercials, sources said.
E4L, whose ticker symbol is ETV, also announced recently that it has set up an Internet membership club called everything4less.com.
According to the company, E4L sells more than 3,000 half-hour television broadcasts each week throughout the world, reaching more than 370 million homes in 70 countries. Its Everything4Less Show is broadcast each week over network radio and simultaneously cybercast over the Internet.