Dobson Communications tender offer for 12¼%, 13% exchangeable preferreds oversubscribed

By Jennifer Chiou

New York, Aug. 22 - Dobson Communications Corp. said investors oversubscribed its offer to exchange up to 32,327 shares or 70% of its 12.25% senior exchangeable preferred stock and up to 135,029 shares or 70% of its 13% senior exchangeable preferred stock.

The company received tenders for 45,865 shares of its 12¼% senior exchangeable preferred stock and 192,663 shares of its 13% senior exchangeable preferred stock in its oversubscribed offer.

In line with the previously announced maximum levels, the Oklahoma City company accepted 32,327 shares of the 12¼% preferreds and 135,029 shares of the 13% preferreds. For the 12¼% preferreds, Dobson will accept 70.48% of those tendered while for the 13% preferreds it will accept 70.07%.

Dobson also said it obtained the required consents in its consent solicitation to amend the respective certificate of designation governing each series of stock to eliminate all voting rights, other than those required by law, and substantially all of the restrictive covenants for 18 months from the expiration date of the exchange offer.

The exchange offer involving the company's class A common stock expired at midnight ET on Aug. 19.

Holders of the preferreds who participate will receive $300 in cash and 168.8 shares, figures set using the $7.20 average stock price for the 10 trading days ending Aug. 16.

On June 30, the company said holders of about 63% of its 12¼% preferred stock and its 13% preferred stock agreed to tender their shares and gave consent.

The dealer manager and solicitation agent is Houlihan Lokey Howard & Zukin Capital, Inc. The information agent is Bondholder Communications Group (212 809-2663).

The company said it expects to pay $50.2 million and 28,249,729 shares of its class A stock in the offer.

The company, which provides wireless phone services to rural U.S. markets, saw its stock drop $0.02 to $7.70.

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