Correction: iPCS gets tenders for all 11½%, 11 3/8% notes

A report in the Prospect News High Yield Daily for May 8 gave an incorrect figure for the amount of 11½% notes tendered in iPCS, Inc.'s offering to buy the notes. A corrected version follows.

New York, May 7 - iPCS, Inc. said it received tenders for all its $165 million 11½% senior notes due 2012 and $125 million 11 3/8% senior notes due 2012 by the tender deadline.

The response is an increase of $25,000 of the 11½% notes compared to the $164.975 million or 99.98% submitted by the early tender deadline.

Final payment is May 7. The tender ended at midnight ET on May 4.

iPCS previously said on April 20 that it had received tenders and consents from holders of a majority of both its 11½% notes and its 11 3/8% notes as of 5 p.m. ET on April 19.

As a result, the company amended the note indentures to eliminate substantially all of the restrictive covenants.

For each $1,000 principal amount of 11½% notes tendered, the payout was based on 50 basis points over the yield of the 4 7/8% Treasury due April 30, 2008.

For each $1,000 principal amount of 11 3/8% notes tendered, the payout was 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 was 5 p.m. ET on April 20.

To fund the offer, the company used 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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