Dobson Communications starts roadshow Tuesday for $600 million 10-year deal

By Paul A. Harris

St. Louis, Sept. 8 - Dobson Communications Corp. begins the roadshow Tuesday for a $600 million offering of senior notes due 2013 (expected ratings B3/CCC), according to a syndicate source.

The deal is expected to price on Thursday, the source added.

Lehman Brother, Morgan Stanley and Bear Stearns & Co. are joint bookrunners on the Rule 144A/Regulation S offering.

Proceeds from the 10-year non-call-five notes will be used to refinance and replace existing credit facilities, to fund the repurchase of approximately $189 million of 12¼% Dobson/Sygnet Communications Co.'s senior notes and to repurchase part of Dobson's outstanding 12¼% senior preferred stock.

The company also plans to obtain a $700 million credit facility.

The company is an Oklahoma City-based rural cellular telephone services provider.

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