FiberTower exchange offer ends; $266.8 million 9% convertible tendered

By Devika Patel

Knoxville, Tenn., Dec. 2 - FiberTower Corp. said its exchange offer for its outstanding 9% convertible senior secured notes due 2012 expired on Dec. 1. The company received tenders for $266.8 million of the notes, or about 90.8% of the outstanding securities.

FiberTower expects to settle the exchange on Dec. 7.

As previously reported, for each $1,000 of convertibles tendered, holders will receive $1,000 in 9% mandatorily redeemable convertible senior secured notes due 2012.

The new convertibles will be mandatorily redeemable for cash, shares of FiberTower common stock and new 9% senior secured notes once some conditions are met.

The new 9% notes will mature six years after the mandatory redemption date. One-third of the interest on the new notes will be payable in cash, and two-thirds will be payable in kind. FiberTower said it will escrow the amount needed to pay the first six semiannual cash interest payments.

No payment will be made for accrued interest on the existing convertibles, but interest on the new 9% notes will begin accruing from the convertibles' last interest payment date.

The company is soliciting consents to amend the indenture governing the existing convertibles that will eliminate or amend substantially all of the restrictive covenants, modify some events of default and the related collateral agreements and provide that the liens securing the new convertibles and new notes will rank ahead of the liens securing the convertibles.

Holders who tender will be deemed to have consented to the proposed amendments.

FiberTower is a San Francisco-based backhaul and access services provider focused on the wireless carrier market.

© 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.