Price talk heard on Rural Cellular $510 million fixed-, floating-rate tranches; pricing Monday

By Paul A. Harris

St. Louis, March 12 - Price talk emerged Friday on Rural Cellular Corp.'s proposed $510 million of senior notes that are being offered in fixed- and floating-rate tranches (B2/B-), according to a syndicate source.

The deal is expected to price on Monday morning.

A $150 to $200 million tranche of six-year floating-rate notes, which are non-callable for two years, is talked at Libor plus 450 to 475 basis points.

Meanwhile, a $310 to $360 million tranche of eight-year fixed-rate notes, which are non-callable for four years, is talked to yield 8¼% to 8½%.

Lehman Brothers and Banc of America Securities are joint bookrunners 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.

The company is an Alexandria, Minn.-based wireless services provider.

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