Rural Cellular to redeem 12.25% exchangeable preferreds

By Jennifer Chiou

New York, Aug. 7 - Rural Cellular Corp. plans to use funds from a subscription agreement to redeem its 12.25% junior exchangeable preferred stock on Sept. 5, according to an 8-K filing with the Securities and Exchange Commission.

Under the subscription agreement, the Alexandria, Minn.-based wireless communication services provider said that on Wednesday it sold 7,956,638 shares of its class A common stock for a purchase price of $358,048,710 to AirTouch Cellular, a wholly owned subsidiary of Cellco partnership, which does business as Verizon Wireless.

The transactions are part of the acquisition of Rural Cellular by Verizon Wireless.

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