NEW YORK-Sprint PCS affiliate US Unwired Inc. squeaked through its initial public offering May 18, pricing its 8-million-share deal at $11 each, $2 below the low end of the expected range of $13-$15.
Donaldson, Lufkin & Jenrette Securities Corp. was lead underwriter for the Nasdaq-listed IPO, which raised $88 million for the Lake Charles, La., carrier. Net proceeds will be used to accelerate construction of the carrier’s personal communications services network and for other general corporate purposes.
US Unwired, the largest Sprint PCS affiliate in terms of population covered and number of subscribers, is owned 35 percent by its chief executive officer, William Henning. The Henning family established US Unwired’s predecessor in 1967.
As of March 31, US Unwired had 66,000 PCS subscribers and an additional 81,000 analog cellular and paging customers. It provides wireless service in 41 markets in the Gulf States region. Alltel Corp., TeleCorp PCS and Verizon Wireless are its main competitors.
