NEW YORK-Microcell Telecommunications Inc., a Montreal-based personal communications services provider, went public Oct. 8 with an initial offering of 14.7 million nonvoting shares of Class B common stock.
The initial selling price of the cross-border sale was at the high end of the anticipated share price: $10.93 in the United States.
Microcell also granted the underwriters an over-allotment option to purchase approximately 2.2 million additional shares at the IPO price. Nesbitt Burns Inc., Toronto, and Merrill Lynch & Co., New York, are joint global underwriters of the stock sale.
The carrier also increased a companion debt issue to $175 million from the $140 million expected earlier-the issue is a private placement of 11.13 percent senior discount notes due 2007.
The new debt securities received speculative grade ratings of B3 from Moody’s Investors Service Inc., New York, and B from both Standard & Poor’s Corp., New York, and Duff & Phelps Credit Rating Co., Chicago.
Microcell, which has a 30-megahertz nationwide PCS license, launched its “Fido” brand of service in the Montreal area in December and has since begun commercial operations in Toronto, Vancouver and other parts of the provinces of Ontario and Quebec. It is part of the North American GSM (Global System for Mobile communications) Alliance and has roaming agreements with Mobility Canada, a cellular carrier.
Most of the proceeds of the planned IPO and companion debt issue are intended to help finance buildout of Microcell’s PCS system.
