UbiquiTel to use note proceeds to redeem 14% notes due 2008

New York, Feb. 4 - UbiquiTel Inc. (Caa3/CCC) announced plans to sell $250 million of new seven-year senior notes in a Rule 144A transaction and to use a portion of the anticipated proceeds to redeem its outstanding 14% Series B senior discount notes due 2008.

UbiquiTel, a Conshohocken, Pa.-based Sprint PCS affiliate, estimated that it had about $12.2 million accreted value of the Series B notes outstanding as of Dec. 31.

The company had issued $12.6 million face value ($9.5 million accreted value at the time of issue) of the notes in February 2003 along with warrants to purchase 9.5 million shares of common stock of the company's parent UbiquiTel Inc.

Proceeds of the issue funded the cash component of the company's offer to exchange new notes plus a cash payment for its then-outstanding $225 million 14% senior subordinated discount notes due 2010, an offer which was successfully completed in February 2003 with most of the 2010 notes having been tendered.

UbiquiTel did not offer a timetable for the proposed redemption of the series B notes.

In addition to using note proceeds to redeem the series B notes, UbiquiTel said that it would use proceeds to repay and terminate its senior secured credit facility, which had $230 million of borrowings outstanding as of Dec. 31.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.