US Unwired brings debt-for-equity exchanges to $75 million

New York, June 1 - US Unwired Inc. said it has entered additional exchange agreements that will bring to $75 million the exchanges of its 13 3/8% senior subordinated discount notes due 2009 for equity.

The latest agreements cover $33.4 million face amount of its debt.

US Unwired said most of the exchanges have been completed and the remainder is expected to close by the end of the week.

After completing these transactions, US Unwired said it will have 163.4 million shares of common stock outstanding and $325 million face amount of 13 3/8% senior subordinated discount notes due 2009, which had an accreted value of about $301.4 million as of March 31.

US Unwired said on May 27 it had exchanged $41.6 million face amount of its 13 3/8% senior subordinated discount notes due 2009 for stock in a series of exchanges.

The bonds had an accreted value of $38.6 million as of March 31.

After completing the transactions, US Unwired had 148.5 million shares of common stock outstanding.

US Unwired's board of directors has approved the elimination of up to $75 million of its 13 3/8% senior subordinated discount notes due 2009 through debt-for-equity exchanges.

The company said it is in discussions with other debt holders to complete the program.

US Unwired is also conducting a cash tender offer for any and all its then $400 million face amount of 13 3/8% notes.

In addition the Lake Charles, La., Sprint PCS affiliate is soliciting consents to amend the note indenture to eliminate certain events of default and restrictive covenants.

Holders who tender by the consent deadline of 5 p.m. ET on May 25 will receive $1,050 per $1,000 face amount including a consent payment of $30 per $1,000.

Holders who tender after the consent date but before the expiry of midnight ET on June 9 will receive $1,020 per $1,000 face amount.

The offer is subject to various conditions including at least a majority of the face amount of the notes being tendered and US Unwired having sufficient funds to finance the tender from an offering of debt securities.

US Unwired noted that it has been in discussions with some holders of the notes about exchanging them for common stock. If completed, an exchange for stock will reduce the amount of notes for which the company is tendering.

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