LUBBOCK, Texas-Sprint PCS affiliate Alamosa Holdings Inc. reported that following modifications to its proposed exchange offers, the carrier received supporting commitments from holders of approximately 68 percent of its existing notes, prompting an extension of the offer until Oct. 29.
The modifications include changing the dividend rate on the Series B preferred stock to a fixed 7.5-percent annual dividend rate, quarterly dividend payments and the additions of a new Series C preferred stock with a conversion price of $4.25 compared with a $3.40 conversion rate for the Series B stock.
Alamosa also said it eliminated the contingent value rights from the original offering, which were initially in place to add compensation if Alamosa’s common stock did not trade above the $3.40 target price during a six-month period after the close of the exchange offer, added the right for the carrier to redeem the preferred stock after three years and eliminated the “automatic conversion” feature that would have allowed Alamosa to convert the remaining preferred shares to common stock once two-thirds of the preferred shares were initially converted.
“The modifications we made to the exchange offers were needed to ensure its success, which is in the best interest of Alamosa and its stakeholders,” explained David Sharbutt, chairman and chief executive officer of Alamosa, who added that the carrier remains focused on reaching its target of 97-percent acceptance of the offer by Oct. 29.
Alamosa noted that prior to the modified terms, noteholders had tendered approximately $233.3 million in principal amount of 12.5-percent senior notes due 2011 and 13.625-percent senior notes due 2011, and $185.5 million of 12.875-percent senior discount notes due 2010.
Alamosa’s stock was trading up more than 10 percent early Thursday at $4.15 per share on above average volume.
