AirGate to sell floating rate notes

ATLANTA-Sprint PCS affiliate AirGate PCS Inc. said it has agreed to sell $175 million first-priority senior secured floating rate notes due 2011 at par value. The notes will bear interest at a rate equal to three-month LIBOR plus 3.75-percent reset quarterly and will be secured on a first priority basis by liens on substantially all of AirGate’s assets.

AirGate reported it plans to use proceeds from the offering to repay and terminate its $131.2 million senior credit facility, to redeem its $1.8 million remaining 13.5-percent senior subordinated discount notes due 2009 and for general corporate purposes.