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UNITED STATES CELLULAR CORP. ANNOUNCES RECORD DATE FOR RIGHTS OFFERING

 CHICAGO, Oct. 13 /PRNewswire/ -- United States Cellular Corporation (AMEX: USM) announced that it expects the record date for its previously announced rights offering to be on or about Oct. 22, 1993 (the "record date"). USM proposes to distribute to holders of its outstanding common shares, at no cost, transferable subscription rights (the "rights") to purchase additional common shares in a public offering. It is proposed that stockholders will receive one right for each five common shares held by them as of the close of business on the record date. The rights are expected to be distributed on or about Oct. 25, 1993 (the "distribution date"). It is anticipated that the rights will entitle the holders thereof to purchase one common share for each whole right held (the "basic subscription privilege") for a price expected to be 10 percent less than the market price of the common shares immediately preceding the commencement of the rights offering (the "subscription price"). Rights holders may also subscribe for additional common shares at the subscription price to the extent that shares are not subscribed for through the exercise of all basic subscription privileges by the expiration date (as defined below) (the "oversubscription privilege"). The rights are expected to expire at 5 p.m., New York City time, on Nov. 15, 1993 (21 calendar days following the distribution date), unless extended (the "expiration date").
 Telephone and Data Systems, Inc. (TDS), which owns over 67 percent of the common shares and 100 percent of the series A common shares, will purchase all common shares not purchased by other rights holders at a price per share equal to the subscription price. In addition, TDS will receive rights on a substantially identical basis to acquire series A common shares.
 As previously announced, the primary purpose of the rights Offering is to reduce the amount of debt due to TDS in order to de-leverage the company's balance sheet and thereby better position the company to continue its expansion and development activities. The net proceeds from the exercise of all rights, including the net proceeds from the sale of common shares to holders other than TDS, will be used to reduce the company's indebtedness to TDS. The rights offering is expected to reduce USM's indebtedness to TDS by approximately $345 million.
 The dealer managers for the rights offering will be Salomon Brothers Inc and Donaldson, Lufkin & Jenrette Securities Corporation.
 The rights offering will be made only by means of a prospectus once the registration statement becomes effective pursuant to the Securities Act of 1933, as amended. The registration statement relating to the rights offering has been filed with the Securities and Exchange Commission and is expected to become effective on or about Oct. 22, 1993. This notice shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of such common shares 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.
 Headquartered in Chicago, USM manages and invests in cellular systems throughout the United States. As of June 30, 1993, USM owned or had rights to acquire interests representing 22.3 million population equivalents in 200 markets. At that date, USM managed operational systems serving 128 markets.
 -0- 10/13/93
 /CONTACT: Information Agent of Salomon Brothers Inc, 800-223-3772 or Kenneth R. Meyers, vice president-finance of United States Cellular, 312-399-8900. Out-of-town media, please call collect./
 (USM (TDS)


CO: United States Cellular Corporation; Telephone and Data Systems
 Inc. ST: Illinois IN: TLS SU: OFR


LG -- NY076 -- 1753 10/13/93 14:07 EDT
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Publication:PR Newswire
Date:Oct 13, 1993
Words:608
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