Welcome to Our WirelessAdvisor Community!

You are viewing our forums as a GUEST. Please join us so you can post and view all the pictures.
Registration is easy, fast and FREE!

Join Now

SunCom reaches deal to reduce debt, pursues ‘strategic alternatives’

Discussion in 'Wireless News' started by ComicalMoodyDan, Feb 1, 2007.

  1. ComicalMoodyDan

    ComicalMoodyDan Gold Senior Member
    Senior Member

    Joined:
    Dec 21, 2001
    Messages:
    6,302
    Likes Received:
    53
    Location:
    Kingsport, TN
    My Phone:
    LG Volt
    Wireless Provider(s):
    Sprint
    SunCom reaches deal to reduce debt, pursues ‘strategic alternatives’
    By Kelly Hill
    Story posted: February 1, 2007 - 1:55 pm EDT

    Regional wireless operator SunCom Wireless Holdings Inc. has reached an agreement with its bondholders to reduce its debt, and also hired a company to advise it on its options, including a possible sale.

    SunCom’s stock was de-listed from the New York Stock Exchange in mid-December because the company had not consistently met the exchange’s requirement for a market capitalization of at least $100 million. The stock, under the ticker symbol SWSH, is now traded over the counter. The company has said it will appeal the de-listing.

    In the meantime, the company made an agreement with bondholders who own more than 91 percent of some of its notes, to exchange the notes for about 87 percent of SunCom’s common stock. The exchange will be completed in the second quarter of 2007, subject to regulatory conditions and shareholder approval. The deal will reduce SunCom’s debt by nearly $680 million and its annual interest payments by about $62 million. The company also made a deal to sell its 69 U.S. towers to SBA Communications Inc. for $18 million, and now will rent the towers instead of owning them; that transaction is expected to close in the first quarter.

    SunCom also hired Goldman, Sachs & Co. as its advisor on the pursuit of “strategic alternatives, including the potential sale of substantially all of its business,” the company said.

    SunCom, which previously operated as an AT&T Wireless Services Inc. affiliate under the Triton PCS name, has struggled following Cingular Wireless L.L.C.’s acquisition of AWS in late 2004 and subsequent agreement with Cingular to end its affiliate arrangement.

    http://www.rcrnews.com/apps/pbcs.dll/article?AID=/20070201/FREE/70201005/1001/FREE
     
    #1 ComicalMoodyDan, Feb 1, 2007
  2. MOTOhooligan

    MOTOhooligan Former Mobile Data Addict
    Senior Member

    Joined:
    Oct 2, 2003
    Messages:
    6,697
    Cell Tower Picture Gallery:
    21
    Likes Received:
    42
    Location:
    A Dead Zone
    My Phone:
    Google Pixel 6a
    Wireless Provider(s):
    Verizon
    “strategic alternatives, including the potential sale of substantially all of its business,”


    "Strategic alternatives," eh? They're selling, they have no other choice. That's just a pleasant euphemism for saying they ran the company into the ground.
     
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
    #2 MOTOhooligan, Feb 1, 2007
  3. TWX

    TWX Mobile Enthusiast
    Senior Member

    Joined:
    Jul 3, 2006
    Messages:
    1,184
    Cell Tower Picture Gallery:
    8
    Likes Received:
    117
    Location:
    Rogers City, Michigan
    My Phone:
    iPhone 5s
    Wireless Provider(s):
    AT&T
    Just wondering, (ex: Cellular One is the 8th largest wireless carrier in the US) than what is SunCom, 7th, 9th??
     
    #3 TWX, Feb 1, 2007
  4. blsemp

    blsemp Senior Member
    Senior Member

    Joined:
    Jan 17, 2003
    Messages:
    376
    Likes Received:
    0
    Location:
    Powdersville, South Carolina
    My Phone:
    Nokia 900
    Wireless Provider(s):
    at&t
    You hit the nail on the head.
     
    #4 blsemp, Feb 1, 2007
  5. UFO

    UFO Bronze Senior Member
    Senior Member

    Joined:
    Jun 27, 2006
    Messages:
    844
    Likes Received:
    1
    Location:
    Hampton Roads, VA
    My Phone:
    Palm Centro
    Wireless Provider(s):
    Sprint and alltel
    http://en.wikipedia.org/wiki/List_of_United_States_mobile_phone_companies

    Not every company reports numbers but not counting MVNOs I count SunCom out to be the 10th largest carrier in the US.
    AT&T, Verizon, Sprint, T-Mobile, Alltel, USCC, Metro, Cricket, and Dobson all report more customers than SunCom's 750,000.

    In a way, I do hate to see SunCom go bust because that's 3/4 of a million people that will be moved onto another carrier. A big draw to a lot of them was SunCom's UnPlan which isn't an option with anybody else in the Carolinas.
     
    #5 UFO, Feb 1, 2007
  6. ComicalMoodyDan

    ComicalMoodyDan Gold Senior Member
    Senior Member

    Joined:
    Dec 21, 2001
    Messages:
    6,302
    Likes Received:
    53
    Location:
    Kingsport, TN
    My Phone:
    LG Volt
    Wireless Provider(s):
    Sprint
    Your numbers are a bit off, SunCom now has a little over one million customers.
     
    #6 ComicalMoodyDan, Feb 1, 2007
  7. UFO

    UFO Bronze Senior Member
    Senior Member

    Joined:
    Jun 27, 2006
    Messages:
    844
    Likes Received:
    1
    Location:
    Hampton Roads, VA
    My Phone:
    Palm Centro
    Wireless Provider(s):
    Sprint and alltel
    It depends on how you count it and here's the link to their 3Q statement. I was just talking about their US market since that article just compares US carriers.

    750,423 US Subscribers, another 296,407 in Puerto Rico and the Virgin Islands at the end of 3Q.
     
    #7 UFO, Feb 1, 2007
  8. Fire14

    Fire14 Easy,Cheap & Sleazy
    Senior Member

    Joined:
    Sep 27, 2002
    Messages:
    8,446
    Cell Tower Picture Gallery:
    293
    Likes Received:
    2
    Location:
    Union County NJ
    My Phone:
    EnV
    Wireless Provider(s):
    Verizon
    It's about time, now to see who is going to buy them up. I do hope it's T-Mobile, since they need that area & it would be a good fit for them.

    Maybe this is what T-Mobile was waiting for?
     
    #8 Fire14, Feb 2, 2007
  9. Matt

    Matt Twin girls!
    Senior Member

    Joined:
    Oct 8, 2001
    Messages:
    4,882
    Cell Tower Picture Gallery:
    2
    Likes Received:
    8
    Location:
    Lititz, Pa.
    My Phone:
    MyTouch 4G
    Wireless Provider(s):
    T-Mobile
    I missed this news, but if I am reading this correcty (I didn't read the filing) then it's pretty much like a bankruptcy in terms of control - the bondholders will be driving since they will own 87 % of the stock, and they'll sell IMO to get their money back.

    Finally, it looks like a time for T-Mobile. This conversion of $680M for 87% of the company values the company at around $750M now.
     
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
    #9 Matt, Feb 3, 2007
  10. Matt

    Matt Twin girls!
    Senior Member

    Joined:
    Oct 8, 2001
    Messages:
    4,882
    Cell Tower Picture Gallery:
    2
    Likes Received:
    8
    Location:
    Lititz, Pa.
    My Phone:
    MyTouch 4G
    Wireless Provider(s):
    T-Mobile
    ...a reverse stock split is never good, the new 10 member board will have 8 new members, etc.
     
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
    #10 Matt, Feb 3, 2007
  11. Matt

    Matt Twin girls!
    Senior Member

    Joined:
    Oct 8, 2001
    Messages:
    4,882
    Cell Tower Picture Gallery:
    2
    Likes Received:
    8
    Location:
    Lititz, Pa.
    My Phone:
    MyTouch 4G
    Wireless Provider(s):
    T-Mobile
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
    #11 Matt, Feb 3, 2007
  12. hf1khal

    hf1khal Who am I to judge
    Senior Member

    Joined:
    Dec 2, 2006
    Messages:
    2,269
    Cell Tower Picture Gallery:
    1
    Likes Received:
    54
    Location:
    Ashburn VA
    My Phone:
    iphone 4, 3G S, BB 9700
    Wireless Provider(s):
    AT&T Mobility, MTC Touch
    Prettty much preps the company for the sale process.
     
    #12 hf1khal, Feb 3, 2007
(You must log in or sign up to post here.)

Share This Page

Copyright 1997-2023 Wireless Advisor™, LLC. All rights reserved. All registered and unregistered trademarks are the property of their respective holders.
WirelessAdvisor.com is not associated by ownership or membership with any cellular, PCS or wireless service provider companies and is not meant to be an endorsement of any company or service. Some links on these pages may be paid advertising or paid affiliate programs.

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.
    Accept Learn More...
    Dismiss Notice