Alaska Communications to buy back $34.3 million 9 7/8% senior notes

By Jennifer Chiou

New York, July 6 - Alaska Communications Systems Group, Inc. announced its subsidiary, Alaska Communications Systems Holdings, Inc., has agreed to repurchase $34.3 million of its 9 7/8% senior unsecured notes due 2011.

The company will pay $1,105.70 per senior note and will finance the buyback with a new $34.0 million term loan and cash on hand.

The redemption is subject to Alaska Communications Systems Holdings' bank lenders approving amendments.

The company also plans to enter into an interest rate swap agreement to fix the interest rate on the initial incremental term loan in order to reduce expenses.

Anchorage-based Alaska Communications Systems, a communications provider that offers telephone service, wireless, long distance, data and internet services, also reported that revenue for 2005 is expected to be between $310 million to $320 million.

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