Alltel to start roadshow for portion of LBO-related cash-pay notes on Monday

By Paul A. Harris

St. Louis, Nov. 2 - Alltel Communications and Alltel Communications Finance, Inc. will begin a roadshow on Monday for a portion of their leveraged buyout-related cash-pay notes, according to an informed source.

The size of the offering remains to be determined, the source said, adding that the portion is expected to be placed by the end of the week.

Citigroup, Goldman Sachs, Barclays and RBS Securities are leading the deal.

In a Thursday press release, the company disclosed the structure of its $7.7 billion of Rule 144A and Regulation S bond and/or bridge debt financing in connection with the merger of Alltel and Atlantis Merger Sub, Inc.

Alltel announced that the financing will include $5.2 billion of senior unsecured debt consisting of senior unsecured cash-pay notes and senior unsecured cash-pay bridge credit facilities.

The financing will also include up to $2.5 billion of senior unsecured PIK debt. All or a portion of the $2.5 billion may take the form of senior unsecured PIK option bridge credit facilities.

In addition the deal includes a $14 billion term loan, a $1.5 billion revolving credit facility and a $750 million delayed-draw term loan.

Proceeds will be used to help fund the merger of Alltel and Atlantis Merger Sub, Inc., which is expected to close during the fourth quarter of 2007.

Atlantis Merger Sub and its parent company, Atlantis Holdings LLC, are affiliates of TPG Partners V, LP and GS Capital Partners VI Fund, LP.

Alltel is a Little Rock, Ark., provider of wireless voice and data communications services.

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