NEW YORK—Alamosa Holdings Inc., which went public about a year ago, halved its planned secondary stock offering last week, selling 4 million shares with proceeds went solely to existing stockholders.
The carrier, headquartered in Lubbock, Texas, is the largest Sprint PCS affiliate. It will grow even larger under a $218 million agreement, announced Oct. 31, to merge with Southwest PCS, another Sprint affiliate.
The news of its decision Nov. 7 to cut its add-on stock offering by half provided a slight boost to Alamosa’s share price, which rose by 1.2 percent to 18 cents in response.
“Although this offering would improve the company’s capital structure and liquidity position, Standard & Poor’s believes Alamosa is well-funded through free cash flow break-even (status),” said Maria Lemos, a telecommunications analyst for the debt rating agency.
“The driving factors for the (B-) ratings are the company’s improving operating and financial metrics, particularly in cash flow measures.”
