iPCS launches $475 million two-part secured note offering

By Paul A. Harris

St. Louis, April 9 - Wireless services provider iPCS, Inc. launched a $475 million two-part offering of senior secured floating-rate notes on Monday, according to an informed source.

The Schaumburg, Ill.-based Sprint PCS affiliate of Sprint Nextel is in the market with a $300 million tranche of first-lien notes (B1/B-). The first-lien notes will be callable immediately at 102.

The company also is offering a $175 million tranche of second-lien toggle notes (Caa1/CCC) with a 75 basis point coupon step-up should the issuer elect to make an in-kind, as opposed to cash, coupon payment. The second-lien notes become callable after one year at 102.

A roadshow will be held on Tuesday in New York and on Wednesday in Boston. An investor call is scheduled for 12:30 p.m. ET on Tuesday.

The deal is expected to be priced on Wednesday or Thursday.

Banc of America Securities LLC is the left lead for the Rule 144A with registration rights offering. UBS Investment Bank is the joint bookrunner. Jefferies & Co. is the co-manager.

Proceeds, together with a portion of the company's available cash, will be used to repurchase its existing $165 million 11½% senior notes due 2012 and $125 million 11 3/8% senior notes due 2012, and to pay a special cash dividend of about $186 million, representing $11.00 per share.

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