Key Developments For FiberTower Corporation
FiberTower Corporation (FTWR.O) (Consolidated Issue listed on NASDAQ Global Market)
Beletic to Become Non-Executive Chairman of the Board of FiberTower Corporation
FiberTower Corporation announced that effective September 1, 2008, John D. Beletic will move from his current position as Executive Chairman and employee of the Company to the position of Non-Executive Chairman of the Board.
FiberTower Corporation Names Kurt Van Wagenen As President And CEO
FiberTower Corporation announced that its board of directors has appointed Kurt Van Wagenen as President and Chief Executive Officer (CEO) effective immediately.
FiberTower Corporation Announces Resignation of Michael Gallagher
FiberTower Corporation announced that Michael Gallagher has resigned, effective immediately, as President, Chief Executive Officer and Director to pursue other interests. The Company also announced that it has formed an 'Office of the President' to lead the Company on an interim basis. Thomas Scott, Chief Financial Officer, and Ravi Potharlanka, Senior Vice President Operations, will serve as co-Presidents for the interim period.
FiberTower Corporation Announces Contract
FiberTower Corporation announced that it had entered into an agreement with Sprint Nextel to provide backhaul services in seven of the wireless carrier's initial WiMax launch markets. FiberTower is unable to disclose terms of the agreement as it is subject to confidentiality agreements.
FiberTower Corporation Announces Pricing of $350 Million Six-Year Convertible Senior Secured Notes
FiberTower Corporation announced the pricing of a private placement of $350 million in aggregate principal amount of its 9.00% Convertible Senior Secured Notes due 2012 (Convertible Notes) to be resold to qualified institutional buyers .Additionally, FiberTower has granted the initial purchasers of the Convertible Notes a 30-day option to purchase up to an additional $52.5 million of its Convertible Notes. The Convertible Notes will be convertible into FiberTower's common stock at a fixed conversion rate of 120.627 shares per $1,000 principal amount of Convertible Notes (equivalent to an initial conversion price of approximately $8.29 per share, which represents a 15% premium based on a closing price of $7.21 on October 25, 2006), subject to adjustment in certain circumstances. Additionally, the Convertible Notes will accrue interest at a rate of 9.00% per annum payable semi-annually in cash. FiberTower will escrow an amount sufficient to pay the first two years of interest payments in cash. Additionally, FiberTower may elect to pay interest-in-kind (PIK) in the third and fourth years at a rate of 11.00% in lieu of cash interest payments. The closing of the private placement of the Convertible Notes is expected to occur on November 9, 2006. FiberTower intends to use the net proceeds from the sale of the Convertible Notes to fund the escrow account, fund its capital expenditures to expand its existing network and open additional markets, and for general corporate purposes.
