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AMERICAN PAGING, INC. FILES FOR INITIAL PUBLIC OFFERING

 CHICAGO, Dec. 8 /PRNewswire/ -- Telephone and Data Systems, Inc. ("TDS") announced that its subsidiary, American Paging, Inc. ("API"), has filed a registration statement today with the Securities and Exchange Commission covering an initial public offering of 3.5 million common shares, all of which will be issued and sold by API. The company will also grant to the underwriters an over-allotment option for up to 525,000 additional shares. Upon completion of the offering, TDS will own 82.5 percent (80.4 percent is the over-allotment option is exercised) of the capital stock of API. It is estimated that the initial public offering price will be between $12 an $14 per common share.
 The net proceeds of the contemplated offering will be used to repay approximately $42 million of debt to TDS, with any remaining net proceeds used for general corporate purposes, which may include capital expenditures related to improving and expanding the company's paging network; acquiring new customers, including purchases of existing systems; and investing in new wireless technologies.
 The offering will be managed by Goldman, Sachs & Co., Merrill Lynch & Co., and Salomon Brothers Inc.
 API is a leading provider of one-way wireless messaging services in the United States with operations concentrated in Florida and in the Mid-Atlantic and Midwest regions. At Sept. 30, 1993, API provided services to 432,000 pagers. API's business strategy is to provide the highest-quality service through one of the industry's most technologically advanced transmission systems, a focus on strong customer service and competitive pricing policy.
 A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
 TDS is a Chicago-based telecommunications company with established local radio paging operations, telephone, and cellular telephone. TDS strives to build value for its shareholders by providing excellent communications services in attractive, closely related segments of the telecommunications industry.
 -0- 12/8/93
 /CONTACT: Murray L. Swanson, executive vice president-finance, 312-630-1900 or Terry M. Busse, API's vice president-finance, 612-623-3100 (Out of town media, please call collect.)/


CO: Telephone and Data Systems, Inc.; American Paging, Inc. ST: Illinois IN: TLS SU: OFR

TM -- NY114 -- 1987 12/08/93 19:01 EST
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Publication:PR Newswire
Date:Dec 8, 1993
Words:436
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