Western Wireless to redeem 10½% '06, '07 notes with new-deal proceeds

New York, July 11 - Western Wireless Corp. (Caa2/CCC) said it plans to use a portion of the net proceeds from its new senior unsecured note offering and certain other funds to repurchase and redeem all of its outstanding 10½% senior subordinated notes due 2006 and 2007.

Western Wireless, a Bellevue, Wash.-based wireless telecommunications operator, was heard by high yield syndicate sources to have sold $600 million of new 9¼% notes due 2013 notes in a Rule 144A transaction on Friday.

The company said that in addition to the redemption of the 10½% notes, the note-sale proceeds, along with the net proceeds from its offering last month of new 4 5/8% convertible subordinated notes due 2023 and the proceeds from recent dispositions of certain assets, will be used to prepay $400 million of the principal amount of indebtedness under its credit facility. Any remaining proceeds would be used for working capital and general corporate purposes.

CMS Energy to redeem 6 ¾% '04 notes with new-deal proceeds

New York, July 11 - CMS Energy Corp. (B3/B+) said it planned to apply the net proceeds from its private placement of new senior notes and new convertible senior notes to redeem its 6¾% senior notes due 2004 and partially repayment of debt outstanding under its second amended and restated senior credit agreement.

CMS, a Jackson, Mich. based electric power producer, was heard by high yield syndicate sources to have sold an upsized $300 million offering of new 7¾% senior notes due 2010 on July 9 and sold $150 million of new 3 3/8% convertible notes due 2023 on July 10.

Orbital Sciences closes financing; proceeds to redeem 12% '06 notes

New York, July 11 - Orbital Sciences Corp. announced the closing of two financing transactions, with the proceeds from one slated to be used to repurchase and redeem its outstanding $135 million of 12% second priority secured notes due 2006.

The Dulles, Va. -based aerospace and aviation systems company will redeem the 12% notes and pay related interest expenses and call premiums using the proceeds of its July 2 sale of $135 million of 9% senior notes due 2011, together with cash on hand.

Orbital said it also closed a new four-year, $50 million revolving credit facility with Bank of America serving as the lead arranger in the syndicated line of credit, replacing the company's former $35 million revolving line of credit with Wells Fargo/Foothill Capital Corp.

The company estimates that its annual interest expense, including amortization of debt discount and deferred financing costs, will be reduced by over 40%, or more than $10 million per year, as a result of the new debt structure.

Following the retirement of the 12% notes and the replacement of the company's former revolving line of credit, Orbital expects to record a third-quarter debt extinguishment charge of approximately $39 million, including approximately $32 million of non-cash charges to write off unamortized debt discount and deferred financing costs.

Equity Inns to redeem 9½% cumulative preferred shares

New York, July 11 - Equity Inns, Inc. (B3) said that it will redeem for cash all of its outstanding 9½% Series A cumulative preferred stock on Aug. 11.

The Germantown, Tenn.-based lodging industry real estate investment trust currently has 2.75 million shares of the series A preferred outstanding, representing an aggregate redemption price of $68.8 million. The stock was issued in June, 1998.

The redemption price will be $25 per share, plus accrued dividends up to the redemption date.

The company plans to fund the redemption using the proceeds of Equity Inns' offering of new 8¾% series B cumulative preferred stock, which is currently expected to close on Aug. 11. The redemption of the series A preferred stock is subject to the closing of the series B preferred stock offering.

SunTrust Bank in Atlanta is the redemption agent for the transaction (call 800 568-3476).

Mid-America Apartment Communities redeeming three issues of cumulative preferred shares

New York, July 11 - Mid-America Apartment Communities, Inc. (B1) said that it will redeem for cash all of its issued and outstanding shares of 9½% series A cumulative preferred stock, 1.6 million shares (82.5% of the outstanding 1,938,830 shares) of its 8 7/8% series B cumulative preferred stock, and all of its issued and outstanding shares of 9 3/8% series C cumulative redeemable preferred stock. The company has approximately $146.88 million face amount of the shares collectively outstanding.

The redemption will take place on Aug. 12.

Mid-America, a Memphis-based real estate investment trust that specializes in apartment properties, will pay a redemption price of $25 per share plus all unpaid accumulated dividends up to and including the redemption date.

Mid-America plans to fund the redemption from the approximately $140 million proceeds of its offering of 5.6 million shares of $25 per share 8.30% Series H cumulative redeemable preferred stock, which is scheduled to close on Aug. 11. It will also use approximately $4.8 million of additional borrowings and $421,500 of operating cash flow for the redemption.

Wachovia Bank NA in Charlotte, N.C. will handle the redemption transactions (call 800 829-8432)

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