SpectraSite says court denies effort to temporarily stop tender, extends expiration date

New York, June 25 - SpectraSite Holdings, Inc. said the U.S. District Court for the District of Delaware rejected an application by some noteholders to temporarily restrain the company from completing its cash tender offer.

The Cary, N.C. wireless tower operator also said it is extending the expiration date for its tender to 5.00 p.m. ET on July 12.

Some bondholders have begun legal action in an effort to stop the cash tender offer.

Their complaint seeks, among other things, to stop SpectraSite completing the transaction.

The bondholders allege the tender offers and the transactions planned in connection with them, including the funding of new term notes by Welsh, Carson, Anderson & Stowe, 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 said it will vigorously defend against the action and "expeditiously" seek dismissal of the remaining claims.

In the tender, the company is 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, which currently owns a 22% economic interest in SpectraSite.

At the close of business on June 25, SpectraSite said $36.5 million principal amount of the 10.75% notes, $17.2 million principal amount of the 12.5% notes, $6.4 million principal amount at maturity of the 12% notes, $9.5 million principal amount at maturity of the 11.25% notes and $1.2 million principal amount at maturity of the 12.875% notes had been validly tendered, representing notes with an aggregate purchase price of $32.3 million.

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