American Cellular says 97.4% of notes tendered

New York, Aug. 13 - American Cellular Corp. said 97.4% of its 9½% senior subordinated notes were tendered as part of the proposed restructuring of its debt and equity ownership.

American Cellular and Dobson Communications Corp. said they waived the requirement that at least 99.5% of the $700 million notes outstanding be tendered.

The offer expired at 5.00 p.m. ET on Aug. 12 and the two companies said they expect to close the transaction on Aug. 18. They will then "promptly" proceed with the out-of-court restructuring of American Cellular's indebtedness and equity ownership.

Under the offer, Dobson Communications and American Cellular will exchange up to $50 million in cash, 45,054,800 shares of Dobson Communications class A common stock and 700,000 shares of a new series of Dobson Communications convertible preferred stock with a liquidation preference of $125 million, convertible into a maximum of 14,285,714 shares of Dobson Communications class A common stock, for the $700 million of notes. American Cellular will become a wholly owned indirect subsidiary of Dobson Communications.

Dobson is an Oklahoma City-based wireless phone company.

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