September 15, 2005

Dobson Communications reported that its American Cellular subsidiary has acquired the non-licensed wireless assets of Endless Mountain Wireless L.L.C., covering Pennsylvania Rural Service Area 4 for $12.2 million.

Dobson noted that it initially will operate under a spectrum manager lease using Endless Mountain's 850 MHz spectrum, with the right to acquire the license next March.

Endless Mountain's spectrum license covers about 98,000 potential customers, and the carrier currently provides GSM services to less than 1,000 customers in the area.

Dobson noted the RSA was incremental to its current service area in Pennsylvania, and it plans to upgrade the network with GPRS/EDGE capabilities.

Dobson announced earlier this week plans to acquire a 30-megahertz C-block license covering Anchorage, Ala., and a 10-megahertz E-block spectrum license covering Duluth, Minn., from Leap Wireless International Inc. for $10 million.

In an unrelated announcement, Dobson said it completed its private offering of $150 million principal amount of senior floating rate notes due 2012 and $150 million principal amount of senior convertible debentures due 2025.

The company noted that net proceeds from the offerings, before expenses, totaled $294 million. Dobson said it granted the initial purchasers of the offerings an option to purchase up to an additional $30 million principal amount of senior convertible debentures that may be exercised before Oct. 7.

Dobson also announced the call for redemption of the entire $299 million outstanding principal amount of its 10.875-percent senior notes due 2010, with a redemption date of Oct. 17.

The company said it plans to use proceeds from the offerings, along with cash on hand, to pay the redemption price, including accrued interest and the redemption premium.

Dobson's stock was trading up 2 cents per share early Wednesday at $7.98 per share.

Source: RCR News