CommNet Cellular Inc. said it has successfully concluded its call for redemption of its 6.75 percent convertible subordinated debentures. Of $74.7 million aggregate principal amount of the debentures outstanding, $41.9 million were redeemed and the balance of $32.9 million was converted into shares of the company’s common stock. CommNet said the redemption has enhanced shareholder value by removing potential dilution of 1.5 million shares underlying the debentures redeemed, which represents 12.5 percent of the company’s current outstanding shares.
Nextel Communications Inc. said it closed previously announced transactions with the Craig McCaw family, Motorola Inc., American Mobile Systems Inc. and OneComm Corp. As part of the McCaw deal, the family invested $200 million in Nextel for 8.16 million units including preferred shares of Nextel, which represent about 24.5 million Nextel common shares. McCaw is entitled to appoint at least 25 percent of the total number of Nextel directors as long as he continues to meet certain financial commitments and other conditions. Motorola received 59.5 million shares of Nextel stock in exchange for various 800 MHz specialized mobile radio licenses. And under the Nextel-OneComm agreement, Nextel issued 22.55 million shares of Nextel common stock to former holders of about 21 million OneComm common shares. As part of the AMS deal, Nextel issued 4.2 million shares of common stock in exchange for all outstanding AMS shares.
The Bank of America and AirTouch Communications Inc. announced a transaction providing a $2 billion credit facility for AirTouch. The company plans to fund further investments in Cellular Communications Inc. and start-up operations. “We’re in the process of building new cellular systems in Italy, South Korea and Spain, as well as a PCS network in the United States,” said Chris Christensen, AirTouch chief financial officer. “In the next few months we have a contractual obligation to purchase additional shares in CCI, our partner in our Michigan and Ohio cellular operations, for up to $720 million,” added Christensen. BA Securities Inc. arranged the credit facility, in which 47 lenders participated.
Hutton Communications acquired Communications Associates Co. to “offer customers the synergies of multiple locations with inventory and field sales personnel quickly and readily available,” said Communications Associates spokesman Chris Ryg. Teaming up, the companies avoid duplication of inventories, noted Bill Mueller, president of Hutton. Communications Associates is able to offer same day shipment of orders to a greater portion of North America, he added. Communications Associates will maintain its Joliet, Ill., facilities and name identity to ensure a smooth transition and customer satisfaction, said Hutton. Based in Dallas, Hutton distributes wireless communications equipment, solar electric and power system products.
Century Telephone Enterprises Inc. completed its acquisition of the wireline cellular license for the Michigan rural service area No. 4 from United States Cellular Corp. Adding this market, which has a population of about 130,000, will enhance the value of Century’s Michigan network, the company said.
