Alltel Corp. said it has successfully remarketed approximately $1.385 billion worth of senior notes due 2007 that were initially issued as part of its equity units. The company noted that as a result of the remarketing, the annual interest rate on the senior notes dropped from 6.25 percent to 4.656 percent, and the notes will no longer form part of the corporate units.
The remarketing is scheduled to be completed in May when Alltel will receive the $1.385 billion in proceeds in exchange for between 22.9 million and 28 million shares of its common stock.
Alltel recently announced plans to acquire rural wireless provider Western Wireless Corp. for $6 billion, which will solidify the company’s position as the nation’s sixth-largest wireless operator with more than 10 million subscribers.
Alltel also filed an application with the Federal Communications Commission in regards to its pending acquisition of network assets and spectrum licenses from Cingular Wireless L.L.C. for $170 million. The deal was originally announced last November and was part of divestitures required by Cingular following its acquisition of AT&T Wireless Services Inc.
The FCC paperwork sets a March 16 deadline for interested parties to file petitions to deny the transaction, a March 28 deadline for oppositions to such petitions, and an April 4 deadline for replies to those oppositions. The transaction was initially expected to close during the first quarter of this year, but looks set for a second-quarter closing at the earliest.
