JACKSON, Miss.-Mobile Telecommunication Technologies Corp. announced a series of interest rate swaps on its 13.5-percent senior notes due Dec. 15, 2002, and also completed a quarterly covenant test.
Both measures were taken to reduce its cash interest payments during the next three years, the company said. The interest rate swaps on the senior notes will reduce cash interest by about $7.4 million a year for three years, Mtel said, and the covenant test will drive the interest rate on its bank credit facility by 1 percent, saving it about $1.2 million annually.
Mtel said it also reduced the outstanding balance on its bank credit facility by $10 million in the first quarter. It now has a $115.5 million balance.
The company also said it will change its name to SkyTel Communications Inc., pending shareholder approval.
The company said the move will unify the company’s image and brand under its primary operating subsidiary’s name-SkyTel Corp.-which represents more than 90 percent of Mtel’s total business.
If approved, the name change will be effective May 22 and the company’s public stock will begin trading on the Nasdaq stock market under the ticker symbol SKYT.
