OKLAHOMA CITY-Dobson Communications Corp. said it has entered into a definitive agreement to acquire the assets of NPI-Omnipoint Wireless L.L.C., which provides GSM service in northern Michigan, for approximately $28 million.
NPI, which reported $20.7 million in total revenues during 2002, owns PCS licenses covering 1.2 million potential customers. Its network is built out to cover a potential 1 million subscribers and serves 38,000 customers. The licenses include several basic trading areas in northern Michigan extending from Grand Rapids and Saginaw to the Canadian border, and are bordered on the east and west by Lake Huron and Lake Michigan. The deal also includes 372 cell sites, of which 100 are owned by NPI.
Dobson noted it currently serves Michigan rural service areas 1, 3 and 10 in the northern part of the state and is in the process of acquiring Michigan RSA 5 from Cingular Wireless L.L.C. The NPI acquisition, which is expected to close during the second quarter of next year, would add 650,000 pops.
Dobson said it would increase its spending by $12 million to upgrade NPI’s network capacity and provide GPRS data services as part of its ongoing network overlay of its legacy TDMA network.
“This is a strategic acquisition that will significantly strengthen our competitive position in northern Michigan,” explained Everett Dobson, president and chief executive officer of Dobson, who added the deal would provide the carrier with a larger “home” network and reduce its off-network roaming expenses.
In other news, Dobson declared a $31.31 per-share cash dividend on its outstanding 12.25-percent senior exchangeable preferred stock that is scheduled to be paid Jan. 15. Dobson added the dividends have an annual rate of 12.25 percent on the $1,000-per-share liquidation preference value of the preferred stock.
Dobson also announced it has entered an agreement for a private transaction to repurchase approximately $46.1 million of its 12.25-percent senior exchangeable preferred stock for $48.9 million.
The company said it expects the transaction to close by the end of the year.
