AirGate $175 million seven-year floater talked at Libor plus 375 bps, to price Thursday

By Paul A. Harris

St. Louis, Oct. 5 - AirGate PCS Inc.'s $175 million offering of seven-year first priority senior secured floating-rate notes (B2/CCC+) is talked to yield three-month Libor plus 375 basis points, an informed source said Tuesday.

Pricing is expected on Thursday.

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

The notes will be non-callable for two years.

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.

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

The company is an Atlanta-based PCS affiliate of Sprint.

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