SpectraSite bondholders act to stop tender offer

New York, June 17 - SpectraSite Holdings, Inc. said it has been informed that some bondholders have taken legal action in an effort to stop the cash tender offer currently under way.

The Cary, N.C. wireless tower operator said holders of its senior notes and senior discount notes have filed a complaint in the U.S. District Court for the District of Delaware which seeks, among other things, to stop SpectraSite completing the transaction.

SpectraSite is currently offering to spend $340 million in cash to buy some of its outstanding 10.75% senior notes due 2010, 12.50% senior notes due 2010, 12.00% senior discount notes due 2008, 11.25% senior discount notes due 2009 and 12.875% senior discount notes due 2010.

The tender and repayment of $10 million of SpectraSite's senior credit facility will be funded by new financing from Welsh, Carson, Anderson & Stowe, which currently owns a 22% economic interest in SpectraSite.

The tender offer is currently set to expire on June 19.

The bondholders allege the tender offers and the transactions planned in connection with them, including the funding of the new term notes by Welsh Carson, violate the indentures governing the notes, the Trust Indenture Act and other securities laws and breach fiduciary duties owed by the company, its board of directors and Welsh Carson to holders of the notes, SpectraSite said.

SpectraSite added that it believes the claims are "without merit" and said it will vigorously defend against the action.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.