LITTLE ROCK, Ark.-Alltel Corp. said it will issue $24.5 million shares of its common stock May 17 in settlement of purchase contracts that are components of its equity units. The company noted there were approximately 27.7 million purchase contracts outstanding, and each contract obligates the holder to purchase 0.8855 of newly issued shares of Alltel common stock for $50.
Alltel’s stock was trading up slightly early Friday at $56.27 per share.
Alltel said that upon settlement of the purchase contracts, it will receive about $1.385 billion in cash proceeds and complete its obligations under the equity units.
Alltel is in the process of a $6 billion acquisition of rural wireless operator Western Wireless Corp. that will bolster the company’s wireless customer base to nearly 10 million subscribers. The deal is expected to close this summer.
