SunCom Wireless Commences Consent Solicitation to Amend Indenture Governing Outstanding 8 1/2% Senior Notes due 2013
February 01 2008 - 3:45PM
PR Newswire (US)
BERWYN, Pa., Feb. 1 /PRNewswire-FirstCall/ -- SunCom Wireless, Inc.
("SunCom"), a wholly-owned subsidiary of SunCom Wireless Holdings,
Inc. ("SunCom Holdings"), today announced that it is commencing a
consent solicitation to amend the indenture under which its 8 1/2%
Senior Notes due 2013 (the "Notes") were issued. The consent
solicitation is being conducted in connection with the proposed
merger between SunCom Holdings and a wholly- owned subsidiary of
T-Mobile USA, Inc. (the "Merger"), pursuant to which SunCom will
survive as a wholly-owned subsidiary of T-Mobile USA. T-Mobile USA
is a wholly-owned subsidiary of Deutsche Telekom AG. The terms and
conditions of the consent solicitation are described in the Consent
Solicitation Statement, dated February 1, 2008 (the "Consent
Solicitation Statement"), and the related Consent Form, which will
be distributed to holders of the Notes. The proposed amendments to
the indenture governing the Notes would eliminate substantially all
the existing requirements for SunCom to provide periodic reports
and financial statements. The proposed amendments would also limit
SunCom's compliance certificate obligations to the requirements set
forth in the Trust Indenture Act. Completion of the Merger is not
conditioned on success of the consent solicitation. The consent
solicitation will expire at 5:00 p.m., New York City time, on
February 14, 2008, unless extended or earlier terminated by SunCom
(the "Expiration Time"). Persons in whose name the Notes were
registered as of the close of business on January 31 (the "Record
Date") or any other person who has been validly authorized to vote
Notes by such registered person (each, a "Holder") are eligible to
deliver their consent to the amendments (a "Consent"). A Holder may
revoke such Consent at any time prior to the time SunCom has
received valid Consents from Holders of a majority in principal
amount of the Notes outstanding and notified the Trustee of such
receipt. Consummation of the consent solicitation is conditioned
upon satisfaction or waiver of the conditions set forth in the
Consent Solicitation Statement, including closing of the Merger and
receipt of Consents from a majority in principal amount of the
Notes outstanding prior to the Expiration Time (excluding for this
purpose certain Holders described in the Consent Solicitation
Statement). Assuming the conditions to the consent solicitation are
met, SunCom will promptly pay, upon the consummation of the Merger,
a consent payment to each Holder who has delivered (and not validly
revoked) a Consent prior to the Expiration Time. The consent
payment will be in the amount of $1.00 for each $1,000 principal
amount of Notes with respect to which such Holder has validly
delivered a Consent. The Notes will be redeemable beginning June 1,
2008 at a price of $1,042.50 per $1,000 principal amount plus
accrued and unpaid interest. T- Mobile USA has advised SunCom that,
subject to the consummation of the Merger, it intends to issue a
call notice exercising this redemption right on or promptly after
the later of April 2, 2008 (the earliest date allowed by the
Indenture for issuing such notices) and the closing of the Merger.
Approval of the proposed amendments would reduce SunCom's costs
following the Merger, including costs associated with preparation
of SEC reports, quarterly preparation of compliance certificates
and other administrative matters. Citi is acting as solicitation
agent for the consent solicitation. For additional information
regarding the terms of the consent solicitation, please contact
Citi at 800-558-4745 (toll-free) or 212-723-6106 (collect).
Requests for documents may be directed to Global Bondholder
Services, which is acting as the information agent and tabulation
agent for the consent solicitation, at 866-873-6300 (toll-free) or
212-430-3774 (collect). This press release is for informational
purposes only and is not a solicitation of consent with respect to
the Notes. The consent solicitation is being made solely pursuant
to the Consent Solicitation Statement and the related Consent Form,
which set forth the complete terms of the consent solicitation.
SunCom is a provider of digital wireless communications services in
the southeastern United States, Puerto Rico and the U.S. Virgin
Islands. http://www.suncom.com/ Forward-Looking Statements This
press release includes "forward-looking statements" that reflect
our current views as to future results and events with respect to
the expected completion and timing of the Merger and other
information relating to the consent solicitation and the Merger.
These statements can be identified by the fact that they do not
relate strictly to historical or current facts. You should be aware
that forward-looking statements involve known and unknown risks and
uncertainties. Although SunCom believes that the expectations
reflected in these forward-looking statements are reasonable,
SunCom cannot assure you that the actual developments or results we
anticipate will be realized, or even if realized, that they will
have the expected effects on the consent solicitation, the Merger
and related transactions. These forward- looking statements speak
only as of the date of this release and SunCom undertakes no
obligation to update or revise any forward-looking statements made
in this press release or elsewhere as a result of new information,
future events or otherwise, except as required by law. In addition
to other factors and matters contained in this document, we believe
the following factors could cause actual events and results to
differ materially from those discussed in the forward-looking
statements: -- the occurrence of any event, change or other
circumstance that could give rise to the termination of the consent
solicitation or the merger agreement; -- the outcome of any legal
proceedings that have been or may be instituted against SunCom,
SunCom Holdings and others relating to the consent solicitation or
the Merger; -- the inability to complete the Merger due to the
failure to obtain regulatory approvals or the failure to satisfy
other conditions to consummation of the Merger; -- the failure of
the Merger to be completed for any other reason; -- the risk that
the proposed transaction disrupts current plans and operations
and/or results in difficulties in employee retention; -- the amount
of the costs, fees, expenses and charges related to the Merger; --
the timing of the completion of the Merger or the impact of the
Merger on our capital resources, profitability, cash requirements,
management resources and liquidity; -- risks and uncertainties
relating to our business (including our ability to achieve
strategic goals, objectives and targets over applicable periods),
industry performance, the regulatory environment, general business
and economic conditions; and -- other risks and uncertainties
detailed in our filings with the Securities and Exchange
Commission, including our most recent filings on Forms 10-Q and
Form 10-K. The foregoing list and the risks reflected in our
filings with the SEC should not be construed to be exhaustive.
SunCom believes the forward-looking statements in this press
release are reasonable; however, there is no assurance that the
actions, events or results of the forward-looking statements will
occur or, if any of them do, what impact they will have on the
consent solicitation or the Merger. Many of the factors that will
determine SunCom's future results or the consummation of the
consent solicitation or the Merger are beyond SunCom's ability to
control or predict. In light of the significant uncertainties
inherent in the forward-looking statements contained in this press
release, readers should not place undue reliance on forward-
looking statements, which reflect management's views only as of the
date on which the statements were made. SunCom cannot guarantee any
future results, developments, performance or achievements.
DATASOURCE: SunCom Wireless, Inc. CONTACT: MEDIA, Paige Layne,
Manager of Corporate Communications, +1- 704-858-5119, , or
ANALYST, Steven M. Somers, CFA, Executive Director of Investor
Relations & Corporate Development, +1-610-651-5900, , both of
SunCom Wireless, Inc. Web site: http://www.suncom.com/
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