NEW YORK-Vanguard Cellular Systems Inc. is planning to sell a $200 million issue of senior unsecured debentures that mature in 2006.
Vanguard, based in Greensboro, N.C., is a major independent cellular telephone systems operator with about 400,000 subscribers in metropolitan areas along the Eastern Seaboard. Its system is largely analog, but Vanguard plans gradual introduction of digital Time Division Multiple Access service.
Moody’s Investors Service announced March 27 it had assigned a B1 rating to the proposed debt securities offering, and a Ba2 rating to each of Vanguard’s existing secured bank loan facilities, which total $675 million.
Proceeds of the proposed new debt issue will be used primarily to repay part of one of the bank loans, a $350 million revolving credit facility.
Salomon Brothers Inc., New York, is lead manager of the proposed offering.
