Dobson Communications to price $150 million seven-year floater late Thursday

By Paul A. Harris

St. Louis, Sept. 6 - Dobson Communications Corp. will hold an investor conference call at noon ET Wednesday for its $150 million offering of seven-year senior floating-rate notes, according to a syndicate source.

Pricing is expected to follow later that day.

Lehman Brothers, Bear Stearns & Co. and Morgan Stanley are bookrunners for the Rule 144A/Regulation S with registration rights offering.

The notes will become callable after two years at 102 and after three years at 101. The notes will also contain a two-year 35% equity clawback.

The company will also sell $150 million convertible debentures due 2025.

The sales of the senior notes and convertible debentures are not conditional on each other.

Proceeds along with cash on hand will be used to redeem $299 million 10 7/8% senior notes due 2010.

The company is an Oklahoma City-based rural cellular telephone services provider.

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