Horizon PCS receives waiver to credit facility through June 28, 2002

By Sara Rosenberg

New York, June 10 - Horizon PCS Inc. obtained a waiver through June 28, 2002 on its credit facility due to non-compliance with EBIDTA requirements for the first quarter of 2002, according to a filing with the Securities and Exchange Commission. Under the waiver, the company has agreed to restrictions on borrowing against the $95 million revolver and not to use proceeds of the $105 million borrowed in March 2002.

In addition, the Chillicothe, Ohio telephone service company is involved in negotiations with its lenders to amend its credit facility. The lending group is seeking a 25 basis points increase in the interest rate, the payment of fees, an increase in post-default interest rates, a new financial covenant regarding minimum available cash, addition prepayment requirements, restrictions on the borrowings under the revolver and restrictions on the use of proceeds of the $105 million borrowed in March, the SEC filing said.

First Union National Bank was administrative agent for the credit facility, Westdeutsche Landesbank Girozentrale was syndication agent and arranger and Fortis Capital Corp was documentation agent.

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