Sprint PCS Affiliate iPCS Files for IPO
Updated 10:39 AM ET March 10, 2000
WASHINGTON (Reuters) - iPCS Inc., the exclusive Sprint PCS Group (PCS.N) affiliate for 35 markets in the midwestern United States, with a population of more than 7 million, filed for an initial public stock offering.
As an affiliate of Sprint PCS, the wireless arm of Sprint
Corp. (FON.N), iPCS markets and sells 100 percent digital, 100 percent PCS (personal communications services) wireless products and services under the Sprint and Sprint PCS names.
iPCS, which is located in Geneseo, Ill., serves areas such as Grand Rapids, Mich., Waterloo-Cedar Falls and Dubuque, Iowa, and eastern Nebraska.
More than 40 colleges and universities are located in its territory with a total enrollment of about 200,000 students.
In addition, the company has access to about 300 retail sites in its territory to sell and distribute Sprint PCS products and services under Sprint PCS's existing agreements
with national retailers like Kmart Corp. (KM.N), Staples Inc. (SPLS.O) and Target Corp. (TGT.N).
iPCS said that AT&T Corp.'s (T.N) Wireless unit is the only cellular or PCS competitor to hold licenses in all of its markets, although they are not currently operating in any of them.
iPCS is looking to raise more than $143 million in the initial public offering of common stock, which it hopes to list on Nasdaq under the symbol "IPCS," according to a
prospectus filed on Thursday with the Securities and Exchange Commission.
The preliminary document did not say how many shares are being offered or their price range, details which are expected in later SEC filings. The underwriters are
Donaldson Lufkin & Jenrette, Robinson-Humphrey Co. and DLJdirect.
The company plans to use the net proceeds, along with available borrowings under increased financing from Nortel Networks Corp. (NT.TO), for capital expenditures,
operating losses, working capital and general corporate purposes.
At the end of December iPCS's outstanding long-term debt under the Nortel financing was approximately $27.6 million.
Since then it has borrowed an additional $1.5 million, and it is negotiating an amended agreement for Nortel to increase the financing to $170 million, which will be effective as of the closing of the IPO to provide funds for the build-out of iPCS's expansion territory.
news.excite.com |
