McCaw Cellular to redeem all outstanding public debt

KIRKLAND, Wash. -- December 1, 1993 -- McCaw Cellular Communications Inc. Wednesday announced redemption of all of its outstanding publicly held debt, including its 14 percent senior subordinated debentures due June 15, 1998, its outstanding 12.95 percent senior subordinated debentures due Aug. 15, 1999, and the 12.75 percent senior notes due Jan. 1, 1994, and 13 percent senior subordinated notes due July 1, 1996, both issued by McCaw's subsidiary, McCaw Cellular Inc.

The company stated that it intends to mail the notices of redemption to the holders of the debentures and notes today. A total of approximately $1.2 billion of debt will be redeemed. The redemption date for all debentures and notes will be Dec. 31, 1993.

The redemption price on the 14 percent debentures will be 104.851 percent of the principal amount, plus interest thereon accruing from Dec. 15, 1993. Interest on the debentures shall cease to accrue on the Redemption Date. The debentures must be surrendered to the Seafirst Paying Agent to collect the redemption price. There are approximately $400 million of the 14 percent debentures outstanding.

The redemption price on the 12.95 percent debentures will be 104.56 percent of the principal amount, plus interest thereon accruing from Aug. 15, 1993. Interest on the debentures shall cease to accrue on the Redemption Date. The debentures must be surrendered to the Seafirst Paying Agent to collect the redemption price. There are approximately $531.3 million of the 12.95 percent debentures outstanding.

The redemption price on the 12.75 percent notes will be 100 percent of the principal amount, plus interest thereon accruing from July 1, 1993. Interest on the notes shall cease to accrue on the redemption date. The notes must be surrendered to the Bankers Trust Paying Agent to collect the redemption price. There are approximately $125 million of the 12.75 percent notes outstanding.

The redemption price on the 13 percent notes will be 103 percent of the principal amount, plus interest thereon accruing from July 1, 1993. Interest on the notes shall cease to accrue on the redemption date. The notes must be surrendered to the United States Trust Co. paying agent to collect the redemption price. There are approximately $150 million of the 13 percent notes outstanding.

McCaw Cellular Communications Inc. operating under the name Cellular One in most of its markets, is the largest cellular service provider in the United States and is developing and marketing a broad range of wireless communications services, including a cellular network that spans the continent and is capable of transmitting voice and data communications.

McCaw Cellular owns a 52 percent interest in LIN Broadcasting Corp., which is engaged in cellular telephone operations, television broadcasting and specialty publishing. McCaw Cellular is the nation's fifth largest messaging service provider and also provides telephone service for commercial and private aircraft through its ownership of Claircom Communications Group, L.P. In August 1993, McCaw announced it had reached an agreement to merge with AT&T and will be responsible for AT&T's wireless business. Following regulatory approvals, the merger is expected to close by the third quarter of 1994.