ARLINGTON, Va.-TeleCorp PCS Inc. said it intends to raise a total of $425 million in gross proceeds through a private sale of senior subordinated discount notes, subject to market and other conditions. The sale includes $350 million from a Lucent Technologies Inc. facility announced last August as well as $75 million of Lucent expansion notes, which were committed to in 1999.
TeleCorp said it intends to sell the notes to Lucent, which, in turn, will sell them through a private offering to qualified institutional buyers. Proceeds from the sale will go toward funding capital expenditures, including PCS licenses, and for other general corporate purposes.
The notes are expected to have a 10-year term, with interest paid semi-annually in cash commencing in 2006.
