Western Wireless bank debt ticked up to the 99 to par range after the company announced it will raise $600 million in senior unsecured debt. The company's bank debt has been climbing out of the 70s since the beginning of the year. The debt jumped about four points after a bank call two weeks ago to the 97-98 range with rumors of a bond offering (LMW, 7/7).
Western Wireless has also received approval from lenders holding onto more than 50% of the company's $2.1 billion credit for an amendment. The amendment reduces the undrawn revolver commitment from $500 million to $350 million. The company will use the proceeds from the new notes as well as proceeds from a $115 million convertible subordinated note issue to reduce the term loan "A" by $150 million. The "B" piece will be cut back by $100 million. The cellular service provider will also look to repurchase and redeem all of its outstanding 101/2% senior subordinated notes due 2006 and 2007. Calls to Wayne Wisehart, Western Wireless' cfo, and an investor relations spokesman were not returned by press time.