Sprint PCS affiliate UbiquiTel Inc. updated its financial and operating guidance for the year as well as announced plans to offer $135 million in a debt offering and begin a cash tender offer for its 14-percent notes due 2010.
The updated financial guidance includes an increase in total revenues for the year from between $353 million and $363 million to between $362 million and $366 million; an increase in adjusted earnings before interest, taxes, depreciation and amortization of between $60 million and $64 million to between $65 million and $69 million; and an increase in free cash flow from between $12 million and $20 million to between $22 million and $26 million. In addition, the carrier also reiterated its capital expenditure guidance of $25 million for the year and tightened its guidance for cash, cash equivalents and restricted cash from between $67 million and $75 million to between $68 million and $72 million.
UbiquiTel also increased operating guidance for its average revenue per user for the year from between $55 and $56 to between $56 and $57, reduced its average monthly churn guidance from between 3 percent and 3.2 percent to less than 3 percent for the year and tightened its net customer additions guidance from between 70,000 and 80,000 subscribers to between 75,000 and 80,000 subscribers for the year.
UbiquiTel also announced that its wholly owned subsidiary, UbiquiTel Operating Co., intends to offer $135 million in aggregate principal amount of its 9.875-percent senior notes due 2011. The carrier said it will use funds from the offering to purchase all of its 14-percent senior subordinated notes and 14-percent senior discount notes with a combined aggregate value of $131.9 million.
UbiquiTel’s stock was trading up more than 7 percent early Tuesday at $3.99 per share.
