Alaska Communications buys back $8 million 9 7/8% notes due 2011

By Jennifer Chiou

New York, Feb. 2 - Alaska Communications Systems Group, Inc. said that its subsidiary, Alaska Communications Systems Holdings, Inc., repurchased $8 million of its 9 7/8% senior unsecured notes due 2011.

The company bought back the notes at a weighted average price of $1,096.75 per $1,000 principal amount of notes.

The Anchorage-based provider of integrated communications also said it expects to receive $7.6 million in cash from the liquidation of the Rural Telephone Bank.

"The notes repurchased will reduce ACS' gross cash interest expense by approximately $790,000 per annum, more than offsetting the expected loss of approximately $500,000 in annual dividends we have historically received from our investment in class C RTB [Rural Telephone Bank] stock," senior vice president and chief financial officer David Wilson said in a news release.

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