US Unwired amends loan, changing covenants, increasing rates, repaying $10 million

By Sara Rosenberg

New York, Oct. 31 - US Unwired Inc. amended its $170 million senior credit facility, revising financial covenants for increased flexibility, retaining $40 million of revolver availability subject to certain additional borrowing conditions, calling for the immediate repayment of $10 million of term loan debt and increasing rates by 50 basis points.

At the same time, the company received approval from lenders for the sale of some non-core operating assets for about $30 million, including the company's cellular operations. Some of the proceeds from the sale will be used to further decrease the level of outstanding senior indebtedness, while the remainder of the proceeds will be retained by the company.

The asset sales are expected to close in the fourth quarter of 2003 and are subject to the approvals of the Federal Communications Commission.

US Unwired is a Lake Charles, La. Provider of wireless personal communication services.

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