Arch Communications Group Inc. lowered its cash interest expenses by $4.55 million a year following a series of interest rate swaps in connection with a $100 million 14-percent senior notes offering. The company lowered the interest rate on the senior notes from 14 percent to 9.45 percent through 2004. Note holders will continue to receive the full 14-percent coupon until the issue is either called or reaches maturity.
USCI Inc. announced it received the third $5 million tranche from institutional investors under the terms of a $15 million tranche convertible preferred stock private placement agreement entered into March 24. USCI will use the proceeds for working capital. “This third $5 million tranche brings the institutional investors’ total investment to $15 million,” said Bruce Hahn, chairman and chief executive officer of USCI.
Moody’s Investors Service placed Fort Worth Tower Inc.’s B3 subordinated debt rating under review for possible downgrade because of its relatively weak operating performance during the past few quarters. FWT’s gross margins and cash flow generation before working capital adjustments were below Moody’s expectations, the rating company said. Fort Worth, Texas-based FWT makes wireless infrastructure products, including antenna support structures such as monopoles and towers.
Pinnacle Towers Inc. announced the U.S. Bankruptcy Court for the District of Delaware overseeing MobileMedia Corp.’s bankruptcy proceedings has approved an agreement for Pinnacle to buy 163 towers in 18 states for $170 million. Under the terms of the sale agreement, expected to close later this month, MobileMedia will lease space on the towers on a nonexclusive basis for 15 years for about $10.7 million. Existing tenants also will continue to rent for $2.1 million annually.
Nextel Communications Inc. selected Wireless Services Corp. as its wireless online paging capabilities provider. With Wireless Services’ Internet messaging gateway technology, Nextel’s U.S. customers will be able to receive e-mail and Internet-originated text messages on their Nextel phones with delivery confirmation, the company said.
