New York, may 16 - SpectraSite Holdings, inc. said it will use $350 million of new financing to tender for up to $340 million of its bonds and repay $10 million of its senior credit facility.
The new financing will be provided by Welsh, Carson, Anderson & Stowe, which currently owns a 22% economic interest in the Cary, N.C. wireless tower operator.
The tender offer will be through a modified dutch auction, SpectraSite said.
Expected to start by May 22, the tender will be for up to a purchase price of $340 million and have a minimum of $300 million. It will cover five series of notes. The prices are shown in Table 1.
Goldman, Sachs & Co. is dealer manager for the tender offer.
In addition to the tender, SpectraSite said it will also make private offers to institutional bondholders to exchange the same issues of senior notes for up to $75 million of new convertible debt.
Welsh Carson's new investment, which is subject to the tender being completed, will be in the form of 12.875% convertible term notes. Interest is payable either in cash or compounded and paid in stock at conversion, at SpectraSite's option.
The notes will be convertible at $0.65 per share. They will rank second in priority to the company's senior secured credit facility and above all bond issues.
The convertible notes to be offered to bondholders will have similar terms.
Table 1: Prices in SpectraSite modified dutch auction tender offer
Maximum Principal Principal
| Series of notes | Price range | offered | outstanding | subject to offer
|
| ($ per $1,000) | ($ millions) | ($ millions) | ($ millions)
|
|
|
| 10¾% senior notes due 2010 | $435-$495 | $50 | $200 | $115
|
| 12½% senior notes due 2010 | $455-$520 | $50 | $200 | $110
|
| 12% senior disc notes due 2008 | $305-$350 | $45 | $225 | $148
|
| 11¼% senior disc notes due 2009 | $255-$290 | $100 | $587 | $392
|
| 12 | 7/8% senior disc notes due 2010 | $230-$260 | $95 | $560 | $413
|
|
|
|
|
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