Commonwealth Telephone plans exchange for 3¼% convertibles

New York, May 3 - Commonwealth Telephone Enterprise, Inc. said it is planning an exchange offer for its $300 million of 3¼% convertible notes due 2023.

The Dallas, Pa., telecommunications company is offering new convertibles with similar terms except that they have net share settlement. On conversion, Commonwealth Telephone will be able to pay cash, stock or a combination instead of stock only as is required with the existing notes.

The new notes will maintain full dividend protection.

The change will allow Commonwealth Telephone to reduce the dilutive effect on its stock from future conversions.

As part of the exchange, the company is offering an exchange fee of $2.50 per $1,000 principal amount.

Commonwealth Telephone said it expects to announce timing for the exchange during the second quarter.

Morgan Stanley & Co. Inc. will be dealer manager, and D.F. King & Co., Inc. is information agent.

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