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UbiquiTel to Sell Spectrum.

Business/Technology Editors

CONSHOHOCKEN, Pa.--(BUSINESS WIRE)--March 6, 2001

The funding for UbiquiTel's acquisition of VIA Wireless will come

from the sale of the spectrum To Voicestream Wireless

and an increase in UbiquiTel's senior debt facility.

UbiquiTel Inc. (NASDAQ:UPCS), a Sprint PCS Network Partner, today announced that it has entered into a definitive agreement to sell to Voicestream Wireless the California spectrum of VIA Wireless ("VIA"), a privately-held Sprint PCS Network Partner, after UbiquiTel completes the acquisition of VIA which it announced on February 22, 2001.

The spectrum to be sold under the agreement includes 10 MHz of F Block spectrum in the Stockton, Merced, Modesto, Fresno and Visalia-Porterville-Hanford BTAs and 10 MHz of A Block spectrum in the Bakersfield BTA (the "Spectrum"). The purchase price for the Spectrum will be $50 million. The sale is subject to the closing of the VIA acquisition, regulatory approval by the Federal Communications Commission and other customary closing conditions.

UbiquiTel also announced today the funding into escrow, along with its other borrowings, of an increase in its senior debt facility of $50 million. With the agreement for the sale of the Spectrum and the increase in funding of its senior debt facility, the company's necessary financing is in place for completion of the acquisition of VIA. The funding of the increase in UbiquiTel's senior debt facility was provided by BNP Paribas, GE Capital and Fortis Capital. With the additional senior debt, and an agreement for the sale of the Spectrum in place, UbiquiTel has the required financing in place to complete the VIA acquisition, and expects to continue to be over funded for its network build-out and operations resulting in additional liquidity for subsequent growth opportunities.

Donald A. Harris, chairman and CEO of UbiquiTel, said, "We are pleased to announce the agreement for the sale of the VIA Spectrum and the increase in our senior debt facility so soon after the execution of the VIA acquisition agreement. Not only do these steps support the planned closing of the VIA acquisition, they also reflect the fundamental financial strength of UbiquiTel and its core business."

In addition to the sale of the California Spectrum, UbiquiTel continues to explore the potential for the sale of certain additional non-core assets of VIA including, among others, owned tower sites and spectrum licenses in Ada, OK and Johnstown, PA.

UbiquiTel is the exclusive provider of Sprint PCS digital wireless personal communication services to midsize markets in the Western and Midwestern United States covering a total population of approximately 7.7 million residents. When complete, the majority of UbiquiTel's network will cover portions of California, Nevada, Washington, Idaho, Montana, Wyoming, Utah, Indiana and Kentucky.

VIA Wireless is the exclusive provider of Sprint PCS digital wireless personal communication services to the central valley of California, which covers approximately 3.4 million licensed POPs. Its markets are contiguous to UbiquiTel's markets in Northern California and include Fresno, Bakersfield and Stockton. The VIA network currently covers approximately 2.5 million residents, including key travel corridors between Los Angeles and San Francisco. As of December 31, 2000, VIA Wireless had more than 40,000 subscribers. Pro forma for the acquisition of VIA, UbiquiTel will have approximately 60,000 subscribers.

The closing of the VIA transaction is subject to regulatory approvals, including the Federal Communications Commission and approval by UbiquiTel's stockholders of the issuance of the shares, and is expected to close by July 31, 2001. Upon completion of the VIA transaction, UbiquiTel will become the second largest Sprint PCS network partner with over 11.1 licensed pops (people).

UbiquiTel's management held a conference call on February 22, 2001 regarding its fourth quarter 2000 results, 2001 outlook and the VIA transaction. Investors and interested parties were provided with the opportunity to listen to the call via a live Webcast accessible on the investor relations page of the company's web site at www.ubiquitelpcs.com. The Webcast and presentation will be available on the site for approximately three months after February 22, 2001.

Statements contained in this news release that are forward-looking statements are subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe-harbor" provisions of the private Securities Litigation Reform Act of 1995 and are made based on management's current expectations or beliefs as well as assumptions made by, and information currently available to, management. A variety of factors could cause actual results to differ materially from those anticipated in UbiquiTel's forward-looking statements, including the following factors: UbiquiTel's ability to consummate the VIA transaction, including obtaining stockholder approval, regulatory approval and other third-party consents; UbiquiTel's ability to consummate the sale of the Spectrum, including regulatory approval; UbiquiTel's ability to find purchasers for other non-core assets of VIA; UbiquiTel's ability to realize expected cost savings from the conversion of VIA Wireless to a Type II Sprint PCS affiliate and integration of VIA's operations; UbiquiTel's ability to finance future growth opportunities; UbiquiTel's dependence on its affiliation with Sprint PCS; changes or advances in technology; changes in Sprint's national service plans or fee structure with UbiquiTel; change in population; increased competition in UbiquiTel's markets; UbiquiTel's ability to manage anticipated growth and rapid expansion; and general market and economic conditions. Certain of these and other applicable risks, cautionary statements and factors that could cause actual results to differ from UbiquiTel's forward-looking statements are included in UbiquiTel's filings with the Securities and Exchange Commission, specifically in the "risk factors" section of UbiquiTel's Registration Statement on Form S-1 as declared effective by the Securities and Exchange Commission on June 7, 2000.
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Publication:Business Wire
Geographic Code:1USA
Date:Mar 6, 2001
Words:927
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