AirGate PCS starts roadshow for $175 million seven-year floaters

By Paul A. Harris

St. Louis, Sept. 30 - AirGate PCS Inc. started a roadshow Thursday for its $175 million offering of seven-year first-priority senior secured floating-rate notes (CCC+), according to an informed source.

Pricing is expected to take place late next week.

Banc of America Securities and Credit Suisse First Boston are joint bookrunners for the Rule 144A/Regulation S offering.

The notes will be secured on a first-priority basis by liens on substantially all of AirGate's assets, with certain exceptions, and guaranteed on a senior secured basis by each of its subsidiaries. The notes are non-callable for two years.

Proceeds will be used to repay the company's $134.4 million senior credit facility, to redeem $1.8 million of its remaining 13½% senior subordinated discount notes due 2009 and for general corporate purposes.

AirGate PCS is an Atlanta-based Sprint affiliate.

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