iPCS sets price talk for $475 million two-part offering of floaters

By Paul A. Harris

St. Louis, April 10 - Wireless services provider iPCS, Inc. set price talk for its $475 million two-part offering of senior secured floating-rate notes on Tuesday, according to an informed source.

The Schaumburg, Ill.-based Sprint PCS affiliate of Sprint Nextel talked a $300 million tranche of first-lien notes (B1/B-) at the Libor plus 225 basis points area. The first-lien notes will be callable immediately at 102.

The company also talked its $175 million tranche of second-lien toggle notes (Caa1/CCC) at the Libor plus 325 bps area. The toggle notes feature a 75 bps 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.

The books are set to close at 3:30 p.m. ET on Wednesday, with pricing expected thereafter.

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 pay a special cash dividend of about $186 million, representing $11.00 per share.

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