YOU ARE AT:Archived ArticlesINTERCEL'S PRIVATE PLACEMENT GARNERS $291 MILLION FOR FIRM

INTERCEL’S PRIVATE PLACEMENT GARNERS $291 MILLION FOR FIRM

NEW YORK-To help build out its personal communications services network, InterCel Inc., a West Point, Ga., cellular carrier with PCS licenses, announced June 10 it had completed the private placement of $300 million in 11.13 percent senior unsecured notes due 2007.

The $291 million in net proceeds of the offering, lead managed by Morgan Stanley & Co. Inc., New York, will be used to construct the carrier’s PCS system in Kentucky and Tennessee. The company may redeem the privately sold debt securities prior to their maturity but not before June 2002, provided it repays investors both accrued interest and a principal amount higher than the face value of the notes.

InterCel also announced it had raised additional financing-$45 million in cash-from the sale of 50,000 shares of series C convertible preferred stock to The Huff Alternative Income Fund L.P. and 50,000 series D convertible preferred stock to SCANA Communications Inc. Proceeds of these transactions also will help finance PCS system construction.

The series C securities become convertible into common stock of the company in 1998, the series D, in 2002, both at a conversion ratio equal to approximately $12.75 per share of common stock. Holders of the series C and D convertible preferred stock aren’t entitled to vote except in certain limited circumstances.

InterCel provides cellular telephone service in western Georgia and eastern Alabama, and is licensed to provide PCS to an area with a population of 24 million in 12 Southeastern states.

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