Independent Wireless One to sell $225 million proceeds two-part bonds

By Paul A. Harris

St. Louis, Dec. 2 - Independent Wireless One Corp. plans to sell $225 million proceeds of bonds to be issued by IWO Escrow Corp., according to a company source.

The source, who declined to disclose any other details, said that the Lake Charles, La.-based Sprint PCS affiliate hopes to complete the deal before the end of 2004.

According to a market source, Bear Stearns & Co., Lehman Brothers and Merrill Lynch & Co. are joint bookrunners for the Rule 144A with registration rights offering.

The market source added that the company plans to sell $150 million of eight-year non-call-two senior secured floating-rate notes and $75 million proceeds of 10-year senior discount notes, which will come with a five-year zero coupon.

Proceeds will be used to repay the existing credit facility as well as for restructuring fees and expenses and for general corporate purposes.

On Wednesday IWO Holdings Inc. said it has started a solicitation for a pre-packaged Chapter 11. The company said it already has lock-up agreements with holders of about 68% of the senior notes to vote for the pre-packaged Chapter 11.

The new notes will be issued as part of the restructuring.

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