McCaw to Redeem Publicly Held Debt
KIRKLAND, Wash. (AP) _ McCaw Cellular Communications Inc. said Wednesday it will redeem all of its approximately $1.2 billion publicly held debt in order to take advantage of low bank interest rates.
The nation’s largest cellular telephone company said it was mailing notices of redemption to holders of the debentures and notes. The redemption date will be Dec. 31.
Carrie Gregerson, McCaw’s finance manager, said interest rates on the notes and debentures ranged from 12.75 to 14 percent, while bank loans are available at around 6 percent.
″We just felt it made a lot of sense to borrow from banks rather than to pay the high interest rates,″ she said.
McCaw, the nation’s largest cellular telephone service provider, agreed in August to be acquired by American Telephone & Telegraph Co. in a $12.6 billion deal expected to close in third quarter 1994.
Gregerson said the decision to redeem the debt was not related to the merger.