LUBBOCK, Texas-Alamosa PCS Holdings Inc. signed a definitive agreement to merge Sprint PCS affiliates Roberts Wireless Communications L.L.C. and Washington Oregon Wireless L.L.C. into its operations.
The transaction will result in a new entity, which will be called Alamosa Holdings Inc., that will become the nation’s largest Sprint PCS Network Partner, with more than 12.5 million potential customers.
Roberts’ owners will exchange 100-percent ownership in the company for 13.5 million shares of Alamosa Holdings and $4 million in cash. Alamosa will also assume Roberts’ net debt of $56 million.
Washington Oregon Wireless owners will exchange 100-percent ownership of the company for 6 million shares of Alamosa stock and $12.5 million in cash. Alamosa will assume the debt of Washington Oregon Wireless, estimated at about $10 million.
In addition, Alamosa received a financing commitment from Citicorp North America Inc. for a new $200 million senior secured credit facility to complete both the Roberts and Washington Oregon Wireless buildouts, to fund operations through cash flow break-even and to refinance existing debt.
In other news, Alamosa reported strong revenue growth and customer additions, but increased net losses for the second quarter ended June 30.
Company revenue increased from $35,588 for second-quarter 1999, to $17.2 million for second-quarter 2000.
Alamosa PCS posted net losses increased from a $4-million loss for the second quarter last year, to a $12.9-million loss for same time this year.
Alamosa said it had 69,569 subscribers at the end of the second quarter, up more than 19,000 subscribers from the end of the first quarter.
Alamosa also reported that average monthly revenue per user was $83 for the second quarter including roaming, and $60 without roaming. Churn was reported at 2.8 percent for the quarter.
David Sharbutt, chairman and chief executive officer of Alamosa, said the company plans to accelerate its buildout plans with a capital expenditure budget of more than $150 million for the year, culminating with the expected launch of markets in Wisconsin during the fourth quarter.
