Subject: [NEXTEL-1] SpectraSite Holdings Reaches Agreement With Bondholders On Recapitalization

From: Marcel <[email-masked]>
Date: Wed, 06 Nov 2002 15:12:25 -0500

http://www.businesswire.com/cgi-bin/f_headline.cgi?bw.110602/223102213&ticker=SITE
--
    "NEXTEL-1 IT'S NOT JUST NEXTEL"
  Note The New address
Subscribe to Nextel-1: http://www.groups.yahoo.com/subscribe/NEXTEL-1

  "NEXTEL2 FOR iDEN SOFTWARE DEVELOPERS"
Subscribe to Nextel2: http://www.groups.yahoo.com/subscribe/NEXTEL2

  "WIRELESS FORUM HOMELAND SECURITY GROUP"
     The Complete Resource for Wireless Homeland Security.
Subscribe to WFHSG:  http://www.groups.yahoo.com/subscribe/WFHSG

------------------------ Yahoo! Groups Sponsor ---------------------~-->
Home Selling? Try Us!
http://us.click.yahoo.com/QrPZMC/iTmEAA/jd3IAA/61FxlB/TM
---------------------------------------------------------------------~->

Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/ 

Click here for SITE stock quote/chart

BW2213 NOV 06,2002 5:44 PACIFIC 08:44 EASTERN

( BW)(NC-SPECTRASITE-HOLDINGS)(SITE) SpectraSite Holdings Reaches
Agreement With Bondholders On Recapitalization

Business Editors

CARY, N.C.--(BUSINESS WIRE)--Nov. 6, 2002--SpectraSite Holdings,
Inc. (Nasdaq:SITE), one of the largest wireless tower operators in the
United States, announced today that it has reached agreements with
beneficial holders of approximately 66% of its senior notes in support
of a restructuring plan that will eliminate SpectraSite's holding
company debt and reduce future consolidated annual interest expense by
approximately $200 million.

The restructuring will be accomplished through a pre-arranged plan
of reorganization in a case filed under Chapter 11 of the Bankruptcy
Code. The plan will only involve SpectraSite Holdings, Inc., which is
a holding company without any business operations of its own, and is
not expected to adversely impact SpectraSite Communications, Inc., the
operating company subsidiary that conducts the Company's day-to-day
operations. As a result, the Company anticipates that its employees,
customers, property owners, suppliers and any other entity doing
business with SpectraSite Communications will not be adversely
affected. The restructuring plan is also not expected to constitute an
event of default or otherwise adversely affect SpectraSite
Communications' $1.1 billion senior credit facility, which is expected
to continue to be serviced from operating cash flow by SpectraSite
Communications.

To implement the plan, SpectraSite Holdings, Inc. will file in
Federal court a pre-arranged Plan of Reorganization under Chapter 11
of the U.S. Bankruptcy Code. SpectraSite's agreements with its senior
note holders will terminate if the Plan is not filed by November 15,
2002.

Steve Clark, President and CEO of SpectraSite, stated, "We are
committed to completing this reorganization as quickly and as smoothly
as possible. This plan enables SpectraSite to significantly strengthen
its balance sheet and insures that the Company will continue to be a
provider of collocation properties for the wireless carriers over the
long term. Throughout this process there should be no impact on our
day-to-day operations and we will serve our customers and property
owners without interruption. All of us at SpectraSite remain focused
on our core business, leasing space on our towers, and we look forward
to emerging from Chapter 11 as a financially stronger company."

Terms of the Debt Restructuring Plan

According to the agreed terms, the Company's outstanding
securities will be treated as follows:

--

The existing $2.0 billion aggregate principal amount at
maturity of senior notes plus accrued interest will be
exchanged for 100% of the reorganized Company's new common
stock, subject to dilution by the existing common stock
holders through warrants to purchase new common stock and by
management through options to buy new common stock under a new
stock option plan.

--

The existing common stock will be exchanged for new warrants
to purchase 5% of the shares of new common stock on a fully
diluted basis. The strike price of the warrants will be based
on an enterprise value of the Company of $1.5 billion.

--

All existing warrants and options to purchase common stock
will be canceled.

The Company's current management team and Board of Directors will
remain in place during the Chapter 11 case. Upon completion of the
Chapter 11 process, a new Board of Directors will be elected,
consisting of five members, including Steve Clark, the Company's Chief
Executive Officer, and four members to be selected by the senior note
holder committee.

Completion of the restructuring plan is subject to certain
conditions, including its acceptance by affected holders of claims,
whose approval will be solicited as part of the bankruptcy process.
Having already achieved agreement with the informal committee
representing more than a majority of the senior note holders, the
Company believes that it will receive the votes required for approval
of the plan.

Completion of the restructuring plan is also subject to the
completion of certain transactions with either Cingular or SBC on
terms that are approved by the senior note holders.

A Current Report on Form 8-K will be filed with the Securities and
Exchange Commission containing additional details regarding the agreed
restructuring terms.

About SpectraSite Communications, Inc.

SpectraSite Communications, Inc. (www.spectrasite.com), based in
Cary, North Carolina, is one of the largest wireless tower operators
in the United States. At June 30, 2002, SpectraSite owned or managed
approximately 20,000 sites, including 7,994 towers primarily in the
top 100 markets in the United States. SpectraSite's customers are
leading wireless communications providers and broadcasters, including
AT&T Wireless, ABC Television, Cingular, Nextel, Paxson
Communications, Sprint PCS, Verizon Wireless and Voicestream.

Safe Harbor

This press release and oral statements made from time to time by
representatives of the Company may contain "forward-looking
statements" concerning SpectraSite's future expectations, financial
and operating projections, plans, strategies and the trading markets
for its securities. These forward-looking statements are subject to a
number of risks and uncertainties. The Company wishes to caution
readers that certain factors may impact the Company's actual results
and could cause results for subsequent periods to differ materially
from those expressed in any forward-looking statements made by or on
behalf of the Company. Such factors include, but are not limited to
(i) SpectraSite's ability to complete the proposed restructuring plan,
(ii) SpectraSite's substantial capital requirements and leverage, even
after the proposed restructuring is completed, (iii) market
conditions, (iv) the Company's dependence on demand for wireless
communications and related infrastructure, (v) competition in the
communications tower industry, including the impact of technological
developments and (vi) future regulatory actions and conditions in its
operating areas. These and other important factors are described in
more detail in Item 1a "Risk Factors" of the Company's Annual Report
on Form 10-K for the year ended December 31, 2001 and in the Company's
other SEC filings and public announcements. The Company undertakes no
obligation to update forward-looking statements to reflect
subsequently occurring events or circumstances.

--30--KO/na*

CONTACT: SpectraSite, Cary
Tabitha Zane, 919/466-5492
[email-masked]
www.spectrasite.com

KEYWORD: NORTH CAROLINA
INDUSTRY KEYWORD: TELECOMMUNICATIONS COMPUTERS/ELECTRONICS
SOURCE: SpectraSite

©2002