FiberTower calls all 9% mandatorily redeemable convertibles due 2012

By Angela McDaniels

Tacoma, Wash., Dec. 15 - FiberTower Corp. will redeem its 9% mandatorily redeemable convertible senior secured notes due 2012 on Dec. 22, according to a company news release.

For each $1,000 principal amount of notes, holders will receive $47.65 in cash, 1,146.16 shares of the company's common stock and $425 principal amount of the company's 9% senior secured notes due 2015.

The company expects to effect a 1-for-10 reverse stock split prior to redeeming the notes. If it does so, the number of shares to be issued per note will be 114.616.

The company received approval to issue the shares at a shareholder meeting on Dec. 15.

The convertibles were issued in an exchange offer for the company's 9% convertible senior secured notes due 2012 that ended Dec. 1.

FiberTower is a San Francisco-based backhaul and access services provider focused primarily on the wireless carrier market.

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