Microcell completes recapitalization, obtains C$25 million credit facility

By Carlise Newman

Chicago, May 1 - Microcell Telecommunications Inc. said it completed its recapitalization process and has obtained a C$25 million 3-year revolving credit facility.

The company is entitled to raise up to an additional C$50 million in revolving bank credit.

The recapitalization reduced Microcell's debt obligations by C$1.6 billion and its annual interest obligations by a range of C$160 million to C$200 million. The company now has C$125 million in cash availability, cash equivalents, short-term investments and marketable securities.

Canadian investors will receive voting shares. Non-Canadian secured lenders and unsecured noteholders will receive voting shares in accordance with the limits set by the foreign ownership and control provisions of the Telecommunications Act and will receive the balance in non-voting shares.

The exercise price of the 2005 warrants will be $19.91, and the 2008 warrants will be $20.69.

The Montreal wireless telecommunications company said its newly issued first preferred voting shares, first preferred non-voting shares, second preferred voting shares, second preferred non-voting shares, class A restricted voting shares, class B non-voting shares, and its 2005 warrants and 2008 warrants will be posted for trading on the Toronto Stock Exchange Thursday. The old class B non-voting shares have been delisted.

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