Crown Castle plans to redeem 9% bonds, higher coupon notes

New York, Sept. 3 - Crown Castle International Corp. said it plans to redeem its 9% guaranteed bonds due 2007 and retire higher coupon senior notes as part of an amendment of its senior credit facility.

The Houston communications tower operator announced Wednesday that is looking to amend its restricted group operating company's $1.2 billion credit facility, to increase the size of the term loan B by $601 million to $1 billion, to extend the tenor of the term loan B to September 2010 from March 2008 and to reduce the revolver commitment to $350 million from $500 million.

As part of the amendment, Crown Castle intends to repay the $99.2 million outstanding balance of its U.K. senior credit facility and redeem its $206.6 million U.K. 9% guaranteed bonds due 2007 with proceeds from the enlarged term loan B.

The approximately $300 million of remaining proceeds from the B loan would be used to purchase higher coupon senior notes.

Qwest cuts debt $122 million through exchanges

New York, Sept. 3 - Qwest Communications International Inc. said it reduced debt by $122 million in the second quarter through private debt-for-debt and debt-for-equity exchanges.

Total borrowings at June 30 were $21.33 billion.

Toll Brothers calls 7¾% notes for redemption

New York, Sept. 3 - Toll Brothers Inc. said that it was calling for redemption all of its outstanding Toll Corp. 7¾% senior subordinated notes due 2007 (Ba2).

The company said that the notes would be redeemed on Oct. 6, at a price of 102.583% of principal amount plus accrued interest. The redemption will result in a pre-tax charge in the company's fiscal 2003 fourth quarter of approximately $3.3 million.

Toll also announced the completion of its recent sale of new 10-year notes, which is providing the funds for the 7¾% note redemption.

As previously announced, Toll Brothers, a Huntingdon Valley, Pa.-based homebuilder, said on Aug. 27 that it planned to retire all of its existing $100 million of the 7¾% notes, using a portion of the proceeds of its new private placement of ten-year senior notes by its Toll Brothers Finance Corp. subsidiary, which was heard by market sources to have sold $250 million of new Baa3/BBB- rated 5.95% senior notes due 2013 via sole lead manager Citigroup on Aug. 26 .

It said that besides retirement of the 7¾% notes, the balance of the proceeds from the new issue would be used for general corporate purposes, including working capital requirements.

Varsity Brands again extends consent deadline for 10½% notes

New York, Sept. 3 - Varsity Brands, Inc. (B2/B-) said it was extending the consent deadline under its previously announced tender offer for its 10½% senior notes due 2007, to 5 p.m. ET on Sept. 3, subject to possible further extension, from the previous deadline at 5 p.m. ET on Sept. 2.

All other original terms and conditions of the tender offer and consent solicitation are unchanged. Holders who had previously tendered their securities do not need to take any further action as a result of this extension.

As previously announced, Varsity Brands, a Memphis, Tenn.-based cheerleading products company, said on Aug. 13 that was starting a cash tender offer for all of its outstanding 10½% notes (Standard & Poor's said there were $115 million of the notes currently outstanding).

The company initially set a consent deadline of 5 p.m. ET on Aug. 26 and an expiration date of 5 p.m. ET on Sept. 12 (the deadlines were subsequently extended, the consent deadline as noted, while the offer will now expire at 12 midnight ET on Sept. 12).

It offered to pay $1,037.50 per $1,000 principal amount of notes tendered, which would include a consent fee of 0.25% of the principal amount for holders who tender by the consent deadline.

Varsity Brands also said it was seeking consents to certain proposed amendments to the notes' indenture.

The company said the tender offer was being carried out in conjunction with the planned leveraged buyout of Varsity by a wholly-owned subsidiary of an affiliate of Leonard Green & Partners, LP, together with members of the company's senior management. Completion of the tender offer is conditioned upon, among other things, the consummation of the merger between Varsity Brands and VB Merger Corp., which was formed by Leonard Green & Partners for the purpose of acquiring majority ownership of Varsity.

Jefferies & Company, Inc. (800 933-6656) is dealer manager and information agent for the tender offer. The depositary is HSBC Bank USA.

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