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US Unwired exchanges $41.6 million 13 3/8% notes for stock
New York, May 27 - US Unwired Inc. said it exchanged $41.6 million face amount of its 13 3/8% senior subordinated discount notes due 2009 for stock in a series of exchanges.
The bonds had an accreted value of $38.6 million as of March 31.
After completing the transactions, US Unwired has 148.5 million shares of common stock outstanding.
US Unwired's board of directors has approved the elimination of up to $75 million of its 13 3/8% senior subordinated discount notes due 2009 through debt-for-equity exchanges.
The company said it is in discussions with other debt holders to complete the program.
US Unwired noted it has also sold non-core assets, negotiated improved covenants with its senior lenders and repaid debt.
US Unwired is also conducting a cash tender offer for any and all its then $400 million face amount of 13 3/8% notes.
The Lake Charles, La., Sprint PCS affiliate is also soliciting consents to amend the note indenture to eliminate certain events of default and restrictive covenants.
Holders who tender by the consent deadline of 5 p.m. ET on May 25 will receive $1,050 per $1,000 face amount including a consent payment of $30 per $1,000.
Holders who tender after the consent date but before the expiry of midnight ET on June 9 will receive $1,020 per $1,000 face amount.
The offer is subject to various conditions including at least a majority of the face amount of the notes being tendered and US Unwired having sufficient funds to finance the tender from an offering of debt securities.
US Unwired noted that it has been in discussions with some holders of the notes about exchanging them for common stock. If completed, an exchange for stock will reduce the amount of notes that the company is tendering for.
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