Dobson Cellular to terminate term loan, cut revolver size in connection with bond sale

By Sara Rosenberg

New York, Oct. 20 - Dobson Cellular Systems Inc. plans to amend its credit facility to eliminate the term loan tranche and reduce the revolver to $75 million, according to a company news release.

The company plans on refinancing/repaying outstanding borrowings under its credit facility using proceeds from a proposed $700 million high-yield offering, consisting of $500 million fixed- and floating-rate senior secured notes due 2011 and an additional $200 million of its fixed-rate senior secured notes due 2012.

Remaining proceeds from the bonds will be used for general corporate purposes, including funding the acquisition of RFB Cellular Inc.

Dobson Cellular is a subsidiary of Oklahoma City-based wireless company Dobson Communications Corp.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.