US Unwired extends exchange offer for one week

By Carlise Newman

Chicago, June 17 - US Unwired Inc. said Tuesday it has extended the expiration date of its exchange offer to 5:00 p.m. ET on June 23. The offer was previously scheduled to expire at 5 p.m. E.T. June 17.

The offer had been criticized by a substantial number of bondholders.

"We're not prepared to say whether we're talking to bondholders. But don't interpret that as deciding we are not," US Unwired's chief financial officer, Jerry Vaughn, told Prospect News. "We're just extending the offer for a week."

As of June 16, $2.25 million of the existing notes had been tendered.

Under the terms of the offer, US Unwired will exchange its 13.375% senior subordinated discount notes due Nov. 1, 2009 for $187.50 in cash and $185 in face amount of new senior notes per $1,000 face amount of existing notes.

Aside for the extension, all other terms and conditions of the exchange offer and the consent solicitation remain the same.

On May 29, holders of more than 50% of US Unwired, Inc.'s 13.375% senior subordinated notes say they will not participate in the company's exchange offer. The holders also formed an ad hoc committee, signed a lock-up agreement and hired Chanin Capital Partners as financial advisors and Orrick, Herrington & Sutcliffe as legal advisors.

The Lake Charles, La. -based owner of five Sprint PCS affiliates will enter into a registration rights agreement in which it will agree to file an exchange offer registration statement with the Securities and Exchange Commission in which the new notes may be exchanged for registered notes having identical terms.

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