SCWH - SunCom Wireless Completes Exchange Agreement, Significantly Reducing Consolidated Debt
Wednesday May 16, 8:48 am ET
Company Also Completes Merger with Subsidiary, Enabling Implementation of 1-for-10 Reverse Stock Split
Management Team Remains in Place; New Board of Directors Constituted
BERWYN, Pa., May 16 /PRNewswire-FirstCall/ -- SunCom Wireless Holdings, Inc. (OTC Bulletin Board: SCWH - News)* has completed the previously announced transactions under an Exchange Agreement between SunCom Investment Co. LLC and holders of certain of SunCom Wireless Inc.'s subordinated notes, as well as the merger between the SunCom Wireless Holdings, Inc. (the Company) and SunCom Merger Corp. Both transactions were approved by the Company's shareholders on April 20, 2007, and have since been approved by the Federal Communications Commission.
As a result of the Exchange Agreement, the Company has reduced its consolidated debt by approximately $731.6 million and annual consolidated interest expense by approximately $66.2 million, giving the Company greater financial flexibility. Select bondholders who previously held or beneficially owned approximately 98.3% of the aggregate outstanding 9-3/8% Senior Subordinated Notes due 2011 and 8-3/4% Senior Subordinated Notes due 2011 (the "Notes") of the Company's indirect, wholly-owned subsidiary, SunCom Wireless, Inc., have exchanged their Notes for approximately 87.8% of SunCom Wireless Holdings' common stock.
In the merger transaction, each outstanding share of the Company's Class A Common Stock was converted into 0.1 share of Class A Common Stock for the purpose, among others, of implementing a 1-for-10 reverse stock split.
The SunCom Wireless senior management team -- including Chairman and CEO Michael E. Kalogris, Executive Vice President and Chief Financial Officer Eric Haskell and Executive Vice President of Operations Bill Robinson -- remains in place.
A new SunCom Wireless Holdings Board of Directors has now been constituted and includes:
-- Michael E. Kalogris, chairman and CEO of SunCom (existing board member)
-- Scott Anderson, Cedar Grove Partners, LLC (existing board member, audit
committee chair)
-- Edward Evans, Stelera Wireless; former chairman and CEO of Syniverse
Technologies and COO of Dobson Communications Corporation
-- Niles K. Chura, Highland Capital Management, L.P.
-- Pat Daugherty, Highland Capital Management, L.P.
-- Karim Samii, Pardus Capital Management L.P.
-- Joe Thornton, Pardus Capital Management L.P.
-- James Volk, CFO of VoiceVerified; former CFO of UbiquiTel.
Two additional independent Directors are expected to be appointed soon.
"We are pleased to complete these transactions that significantly strengthen SunCom's financial position. We are focused on the operations of our business and providing the best possible wireless service to our more than one million customers," said Kalogris.
"I'd like to express my appreciation to the outgoing directors of the SunCom Board including Matt DeVito, Arnie Sheiffer and Eric Haskell who served the company and its shareholders with great distinction," added Kalogris.
About SunCom Wireless
SunCom Wireless is a leader in offering digital wireless communications services to consumers in the Southeastern United States, Puerto Rico and the U.S. Virgin Islands. With more than 1 million subscribers, SunCom is committed to being a different kind of wireless company focused on treating customers with respect, offering simple, straightforward plans and providing access to the largest GSM network and the latest technology choices. SunCom Wireless is a proud provider of Wireless AMBER Alerts. For more information about SunCom products and services, visit www.suncom.com or call 877-CALL-SUN (1-877-225-5786).
*EFFECTIVE May 16, 2007
--------------------------------------------------------------------------------
Source: SunCom Wireless Holdings, Inc.
News 
Market Data 
Discover 
