New Issue: American Cellular $900 million eight-year notes yield 10%

By Paul A. Harris

St. Louis, July 25 - ACC Escrow Corp. priced $900 million of senior notes due Aug. 1, 2011 (B2/B-) at par Friday to yield 10%, according to an informed source.

Price talk had widened to 10% area from 9½%-9¾%.

Bear Stearns & Co. and Morgan Stanley were bookrunners on the Rule 144A deal.

Proceeds will be used as part of a restructuring of $1.6 billion of American Cellular Corp.'s debt. ACC Escrow will merge into American Cellular on completion of the restructuring.

The issuer is based in Oklahoma City.

Issuer:	ACC Escrow Corp.
Amount:	$900 million
Maturity:	Aug. 1, 2011
Security description:	Senior notes
Bookrunners:	Bear Stearns, Morgan Stanley
Coupon:	10%
Price:	Par
Yield:	10%
Call features:	Callable on Aug. 1, 2007 at 105.0, then 102.50, declining to par on Aug. 1, 2009 and thereafter
Equity clawback:	Three years for up to 33 1/3%
Settlement date:	Aug. 8, 2003 (T+10)
Ratings:	Moody's: B2
	Standard & Poor's B-
Distribution:	Rule 144A
Price talk:	10% area (widened from 9½%-9¾%)

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