American Cellular sets structure as $850 million facility launches

By Sara Rosenberg

New York, Feb. 20 - American Cellular Corp. detailed tranching on its $850 million senior secured credit facility as the deal was launched with a bank meeting at 2 p.m. ET on Tuesday, according to a market source.

The facility consists of a $75 million revolver, a $700 million term loan B and a $75 million delayed-draw term loan, the source said.

Price talk on the deal is still to be determined since ratings have not yet emerged, the source added.

Lehman and Morgan Stanley are the joint lead arrangers on the deal, with Lehman the left lead.

Proceeds from the credit facility, along with $425 million of senior notes, will be used to refinance existing debt, including the company's existing senior secured credit facility, $18.1 million of 9½% senior subordinated notes due 2009 and $900 million of 10% senior notes due 2011.

The tender offer for the 10% notes will expire on March 15.

American Cellular is a subsidiary of Dobson Communications Corp., an Oklahoma City-based provider of wireless phone services to rural markets.

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