Sprint PCS affiliate AirGate PCS Inc. said it intends to offer $175 million in aggregate principal amount of first priority senior secured floating rate notes due 2011, which will be secured by liens on substantially all of the carrier’s assets.
AirGate added that the offer was subject to market conditions, and it plans to use proceeds to repay and terminate its $134.4 million senior credit facility, redeem its $1.8 million remaining 13.5-percent senior subordinated discount notes due 2009 and for general corporate purposes.
In other affiliate fund-raising news, UbiquiTel Inc. priced an offering of $150 million of 9.875-percent senior notes due 2011 that will be the same class as its outstanding $270 million 9.875-percent notes and will be issued at a price of 103.5 percent.
UbiquiTel said it intends to use a substantial portion of the proceeds from the offer to purchase all of its 14-percent senior subordinated notes and 14-percent senior discount notes that were part of a tender offer and consent solicitation announced earlier this week. The carrier plans to use the remaining proceeds for general corporate purposes.
The transaction is expected to settle Oct. 14.
