US Unwired tenders for 13 3/8% notes

New York, May 12 - US Unwired Inc. said it has begun a cash tender offer for any and all its $400 million face amount of 13 3/8% senior subordinated discount notes due 2009.

The Lake Charles, La., Sprint PCS affiliate is also soliciting consents to amend the note indenture to eliminate certain events of default and restrictive covenants.

Holders who tender by the consent deadline of 5 p.m. ET on May 25 will receive $1,050 per $1,000 face amount including a consent payment of $30 per $1,000.

Holders who tender after the consent date but before the expiry of midnight ET on June 9 will receive $1,020 per $1,000 face amount.

The offer is subject to various conditions including at least a majority of the face amount of the notes being tendered and US Unwired having sufficient funds to finance the tender from an offering of debt securities.

US Unwired noted that it has been in discussions with some holders of the notes about exchanging them for common stock. If completed, an exchange for stock will reduce the amount of notes that the company is tendering for.

D.F. King & Co. Inc. is the information agent (800 290-6431 or call collect 212 269-5550). Lehman Brothers is the dealer manager and solicitation agent (contact Liability Management Group at 800 438-3242 or call collect 212 528-7581).

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