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Paxnet pumps up funds

Communication co. closes $275 mil in stox

Paxson Communications Corp. announced Wednesday the successful close of $275 million in preferred stock issues.

One issue raised $200 million, as planned, while a second issue was bumped up to $75 million from an originally projected $50 million. The second issue also included warrants to allow the purchase of common stock at $16 a share.

Paxson chairman Lowell (Bud) Paxson said the proceeds would be used to roll out Paxnet, the family entertainment network slated for an Aug. 31 launch.

“This capital infusion now provides the company with the resources necessary to reach a post-launch goal of bringing Paxnet into the living rooms of as many U.S. television households as possible by utilizing direct cable and direct satellite distribution to augment the 73% of all U.S. television households contained in our broadcast television station group’s markets,” he said.

Paxson is the country’s largest group of broadcast TV stations, with 78 owned, operated or affiliated properties in 76 U.S. markets.