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iPCS gets consents to amend 11½%, 11 3/8% notes
By Laura Lutz
Des Moines, April 20 - iPCS, Inc. announced that it received tenders and consents from holders of a majority of both its outstanding 11½% senior notes due 2012 and its outstanding 11 3/8% senior notes due 2012 as of 5 p.m. ET on April 19.
As a result, the company has amended the note indentures to eliminate substantially all of the restricitve covenants.
For each $1,000 principal amount of 11½% notes tendered, the payout will be based on 50 basis points over the yield of the 4/78% Treasury due April 30, 2008.
For each $1,000 principal amount of 11 3/8% notes tendered, the payout will be based on 50 bps over the yield of the 5 1/8% Treasury due June 30, 2008.
The payouts include a $30.00 per $1,000 principal amount consent payment for notes tendered before the consent deadline.
The consent deadline will be 5 p.m. ET on April 20. The offer will expire at midnight ET on May 4.
To fund the offer, the company intends to use proceeds from proposed offerings of $300 million of first-lien senior secured floating-rate notes due 2013 and $175 million of second-lien senior secured floating-rate notes due 2014.
Along with cash on hand, remaining proceeds will go toward a special cash dividend to common stockholders and to pay related fees and expenses.
The special dividend, which is subject to board approval, will total about $186 million, which represents $11.00 per share.
D.F. King & Co., Inc. (800 859-8511 or collect 212 269-5550) is the information agent. Banc of America Securities LLC (888 292-0070 or collect 704 388-9218) and UBS Investment Bank (888 722-9555 or collect 203 719-4210) are the dealer managers and solicitation agents.
Based in Schaumburg, Ill., iPCS owns and operates Sprint Nextel's nationwide PCS network.
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