Crown Castle convert deal proceeds to redeem 10 5/8% ' 07 notes

New York, June 26 - Crown Castle International Corp. announced a public offering of convertible senior notes, saying it expects to raise approximately $200 million; the company intends to use the net proceeds from this offering to fund a portion of its previously announced redemption of its 10 5/8% senior discount notes.

Crown Castle further said that this offering retains the company's flexibility to utilize a portion of its existing cash balances to purchase or redeem all of its outstanding 12 ¾% senior exchangeable preferred Stock due 2010, which had an aggregate redemption value of $245.8 million as of March 31. Crown Castle currently expects to purchase or redeem the 12 ¾% exchangeable preferred no later than Dec. 15, the first contractual optional redemption date for such securities.

As previously announced, Crown Castle, a Houston-based communications antenna tower company, said on May 30 that it was planning to redeem its $239.2 million of currently outstanding 10 5/8% notes at the contractual call price of 105.313% of principal.

The company said the redemption would take place on or about July 7, and that the notes' trustee, The Bank of New York, would issue a notice of redemption to holders of record.

The company said that the redemption of the bonds would result in a reduction of annual cash interest expense of approximately $25.4 million.

Crown Castle further said that operating on the assumption the bonds will be redeemed in full as announced, it was raising its projections of expected net cash provided by operating activities for 2003 to between $169 million and $209 million (versus its previous estimate of between $160 million and $200 million), while expected net cash provided by operating activities for 2004 is now seen between $165 million and $235 million (versus the earlier estimate of between $140 million and $210 million).

The company additionally said that with the 10 5/8% notes redeemed, it now expects free cash flow for 2003 to total between $29 million and $59 million, up from its earlier estimate of $20 million to $50 million, while expected free cash flow for 2004 is now expected to total between $75 million and $105 million, up from the previous estimate of between $50 million and $80 million.

Crown Castle said the increase in expected net cash provided by operating activities for 2003 and expected free cash flow for 2003 reflects the effect of accrued interest on the date of redemption and the November 15th timing of the semi-annual interest payment.

Its 2003 and 2004 projected net cash provided by operating activities assumes the effect of converting paid- in-kind interest to cash pay for the 10 3/8% notes, as well as the company's 11 ¼% senior discount notes and 12 ¾% senior exchangeable preferred stock.

Global Imaging redeems 10 ¾% ' 07 notes as part of refinancing

New York, June 26 - Global Imaging Systems, Inc. (B2) said it had completed its comprehensive debt refinancing plan, including the redemption of its 10 ¾% senior subordinated notes due 2007.

The Tampa-based provider of office technology solutions said that it had to pay a $5.4 million prepayment premium for the early redemption of the notes, but added that given the low interest rate (average about 4%) at which the company's debt was refinanced, it expects the interest rate savings to offset the prepayment premium within a year.

In addition to redeeming the outstanding 10 ¾% notes ($100 million had been issued in March, 1999), completion of the debt refinancing also included the company's closing a $140 million six-year term loan bearing interest at a rate of 3% over LIBOR, provided by a group of banks and financial institutions led by Wachovia National Bank; closing a $90 million five-year revolving line of credit bearing interest at a rate of 2.25% to 2.75% over LIBOR, or 1% to 1.5% over a base rate related to the prime rate, depending on the company's leverage ratios, which was also provided by a Wachovia-led group; and previously selling $57.5 million principal amount of 4% convertible senior subordinated notes due 2008.

The company utilized a portion of the proceeds from the new senior credit facility to pay off the previously existing senior credit facility and to redeem the outstanding 10 ¾% notes.

Shaw Communications plans to redeem Star Choice 13% ' 05 noteswith asset-sale proceeds

New York, June 26, 2003--Shaw Communications Inc. (B2) said it anticipates closing the previously announced sale transactions for cable assets in Florida and Texas on June 30, and expects to apply a portion of the net proceeds to redeem U.S. $150 million of 13% senior secured notes due 2005 issued in December, 1997 by Star Choice Communications Inc., now a Shaw subsidiary.

Shaw, a Calgary, Alberta-based diversified communications company, is selling its Florida and Texas based cable assets to Bright House Networks, LLC and Cequel III, respectively. Gross proceeds should amount to approximately U.S. $197 million.

The Star Choice notes are currently callable at 106.5% of the issue price of U.S.$150 million. The effect of receiving the sale proceeds and applying them to redeem the Star Choice notes - as well as using the remainder of the proceeds to pay down bank debt - will be to reduce Shaw's interest expense by approximately C$26 million per year.

Star Choice expects to issue formal notice of the redemption to the holders of the 13% notes in mid-July.

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