By Paul A. Harris
St. Louis, May 24 - Rural Cellular Corp. priced a massively upsized $425 million issue of six-year floating-rate senior subordinated notes (Caa2/CCC) at par to yield three-month Libor plus 300 basis points on Thursday, according to an informed source.
The spread to Libor came at the wide end of the Libor plus 275 to 300 bps price talk.
Bear Stearns & Co. was the bookrunner for the Rule 144A with registration rights issue, which was upsized from $115.5 million.
Proceeds from the offering will be used to redeem the company's 11 3/8% senior subordinated debentures due 2010.
Rural Cellular is an Alexandria, Minn.-based wireless provider.
| Issuer: | Rural Cellular Corp.
|
| Amount: | $425 million (increased from $115.5 million)
|
| Maturity: | June 1, 2013
|
| Security description: | Floating-rate senior subordinated notes
|
| Bookrunner: | Bear Stearns & Co.
|
| Coupon: | Three-month Libor plus 300 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 300 bps
|
| Call features: | Callable on June 1, 2008 at 102, 101 par on and after June 1, 2010
|
| Equity clawback: | Until June 1, 2010 for 35% at par plus applicable coupon
|
| Trade date: | May 24
|
| Settlement date: | May 30
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | Libor plus 275 to 300 bps
|
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