Rural Cellular to start roadshow Tuesday for $510 million in two tranches

By Paul A. Harris

St. Louis, March 8 - Rural Cellular Corp. will start a roadshow Tuesday for a $510 million, two-part offering of senior secured notes (expected ratings B3/B-), a syndicate source said.

Pricing is expected early in the March 15 week.

The Alexandria, Minn.-based wireless services provider is offering six-year floating-rate notes that are non-callable for two years and eight-year fixed-rate notes that are non-callable for four years. Tranche sizes remain to be determined.

Lehman Brothers and Banc of America Securities will run the books on the Rule 144A/Regulation S offering. Lazard is the co-manager.

Proceeds will be used to repay bank debt and terminate interest rate swap agreements.

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