-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RMmPXzSIjLZh46WD2yHV/5ymSRzK1LekXYtLdyISjbppDIBq526eR/bUSKZyYf5w l++pR8lT84XObrjqca1r1w== 0000950130-00-002997.txt : 20000518 0000950130-00-002997.hdr.sgml : 20000518 ACCESSION NUMBER: 0000950130-00-002997 CONFORMED SUBMISSION TYPE: 425 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20000517 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: TELECORP PCS INC CENTRAL INDEX KEY: 0001089341 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 541872248 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 425 SEC ACT: SEC FILE NUMBER: 000-27901 FILM NUMBER: 638728 BUSINESS ADDRESS: STREET 1: 1010 N GLEBE ROAD STREET 2: SUITE 800 CITY: ARLINGTON STATE: VA ZIP: 22201 BUSINESS PHONE: 7032361100 MAIL ADDRESS: STREET 1: 1010 N GLEBE ROAD STREET 2: SUITE 800 CITY: ARLINGTON STATE: VA ZIP: 22201 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: TELECORP PCS INC CENTRAL INDEX KEY: 0001089341 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 541872248 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 425 BUSINESS ADDRESS: STREET 1: 1010 N GLEBE ROAD STREET 2: SUITE 800 CITY: ARLINGTON STATE: VA ZIP: 22201 BUSINESS PHONE: 7032361100 MAIL ADDRESS: STREET 1: 1010 N GLEBE ROAD STREET 2: SUITE 800 CITY: ARLINGTON STATE: VA ZIP: 22201 425 1 SCHEDULE 425 Filed by TeleCorp PCS, Inc. Pursuant to Rule 425 under the Securities Act of 1933 And deemed filed pursuant to Rule 14a-12 Of the Securities Exchange Act of 1934 Subject Companies: TeleCorp PCS, Inc. Commission File No. 000-27901 Tritel, Inc. Commission File No. 000-28435 On February 28, 2000, TeleCorp PCS, Inc. ("TeleCorp"), a Delaware corporation, Tritel, Inc. ("Tritel"), a Delaware corporation, and AT&T Wireless Services, Inc., a Delaware corporation, executed a definitive Agreement and Plan of Reorganization and Contribution (the "Merger Agreement"). Additionally, on February 28, 2000, AT&T Wireless PCS, LLC, a Delaware limited liability company, TeleCorp, and certain other affiliates of TeleCorp, executed a definitive Asset Exchange Agreement (the "Asset Exchange Agreement"). THE FOLLOWING IS A SLIDE PRESENTATION FIRST USED BY TELECORP ON MAY 17, 2000 ================================================================================ ------------ TeleCorp ------------ Banc of America Securities LLC Growth Telecommunications, Media & Entertainment Conference May 17, 2000 NASDAQ National Market: TLCP ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ Investment Considerations TeleCorp ------------ ================================================================================ . Dramatic growth in wireless continues . Largest AT&T Wireless affiliate, backed by equity ownership - Exclusivity, Brand, Roaming, Coverage . Attractive market footprint covering 16.7 million POPs . Successfully launched in all major markets . Abundant spectrum in major markets . Designated entity status provides growth opportunity . Experienced and incentivized management team . Scale and scope through merger with Tritel ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ Dynamic and Growing Industry TeleCorp ------------ ================================================================================ Wireless Penetration -------------------- Over 50% penetration by 2002 [WIRELESS PENETRATION GRAPH] EDGAR REPRESENTATION OF DATA POINTS USED IN GRAPH ------------------------------------------------- Year % of Wireless Penetration ---- ------------------------- 1996 0.165 1997 20.7 1998 25.7 1999 32.0 2000 39.4 2001 49.3 2002 57.8 2003 64.5 2004 69.4 2005 73.4 2006 76.4 2007 79.0 2008 79.7 . As of April 2000, there were over 86.5 million U.S. wireless subscribers . 42,338 new subscribers everyday, one new subscriber every two seconds Source: DLJ Global Wireless Communications Industry Report, Winter 2000, and Cellular Telecommunications Industry Association ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ Company History TeleCorp ------------ ================================================================================ July 1996 Gerald Vento & Tom Sullivan founded TeleCorp April 1997 Obtained PCS licenses for New Orleans, Memphis & Little Rock July 1998 Closed joint venture with AT&T July 1998 Received equity commitments of $128 million & bank commitments of $525 million 1st Qtr. 1999 Launched New Orleans, Baton Rouge, Memphis and Little Rock markets April 1999 Completed $328 million senior subordinated notes offering April 1999 Launched New England market April-June 1999 Acquired additional licenses covering 2.4 million Pops in Louisiana markets May 1999 Purchased additional spectrum in C-Block re-auction May 1999 Acquired PCS license covering 3.9 million for San Juan, PR MTA from AT&T June 1999 Launched Puerto Rico market Nov 1999 Raised $253 million in IPO and concurrent offering of 12.8 million shares Feb/Mar 2000 Announced merger with Tritel; AT&T property swap
================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ AT&T Benefits TeleCorp ------------ ================================================================================ . Most recognized and respected brand name in communications - [LOGO]SunCom [LOGO]AT&T co-branding ----------------------------------- Member of the AT&T Wireless Network . Preferred roaming partner to AT&T Wireless, 109 million total roaming minutes in 1999 - Contiguous to AT&T and affiliate markets . Seamless coast-to-coast coverage . Unique affiliate program - TeleCorp owns its licenses and pays no franchise fees to AT&T . Scale benefits from volume purchasing discounts . Nationwide marketing and advertising campaigns ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ TeleCorp Footprint TeleCorp ------------ ================================================================================ 16.7 million Pops in 3 strategic regions . 8 of top 100 markets . Major roaming destinations: 39 million visitors annually . 38% more dense than U.S. average South/Central Region 10.9 MM Pops [Map of South/Central U.S.] New England 1.9 MM Pops [Map of New England] Puerto Rico / USVI 3.9 MM Pops [Map of Puerto Rico/USVI] [Map Color coded Legend: TeleCorp Other SunCom affiliates AT&T and roaming partners] ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ Pro Forma TeleCorp Footprint TeleCorp ------------ ================================================================================ . From the Great Lakes to the Gulf of Mexico... . 16 of the top 100 markets . 35 million people . 14 states and Puerto Rico [Map of portion of the United States and Puerto Rico] ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ Coast-to-Coast Coverage TeleCorp ------------ ================================================================================ [Map of the United States and Puerto Rico] Map Color Coded Legend: Telecorp/SunCom Territory Other SunCom Affiliates AT&T and Roaming Partners ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ TeleCorp/Tritel/AWS Swap TeleCorp ------------ ================================================================================ Two Concurrent Deals: - -------------------- - Merger with Tritel, Inc. - Exchange & acquisition of properties w/ AT&T Wireless - TeleCorp New England properties for markets in Wisconsin (Milwaukee) and Iowa (Des Moines) . Merger with Tritel, Inc. - all stock, tax-free, fixed ratio - Tritel shareholders will receive .76 shares of TeleCorp common stock for 1 share of Tritel common stock ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ Two Concurrent Deals, cont'd. TeleCorp ------------ ================================================================================ . Exchange & Acquisition - Exchange 1.9M POPs in New England market for 1.9M POPs in Wisconsin & Iowa and $100M of cash - Acquisition of 4.1M POPs in Wisconsin and Iowa for 9.3M shares of TeleCorp stock to AT&T - AT&T contractual right for additional 1.4M POPs if acquired and accompanying branding rights - Assumption of FCC debt for Industar acquisition - Extension of AT&T brand usage for two additional years ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ Strategic Rationale TeleCorp ------------ ================================================================================ . Strategic fit - Formation of single designated entity vehicle - Delivers contiguous markets covering 35 million Pops - Provides operating efficiencies and scale - Enhances data strategy . Strong and growing markets - Top ten carrier, 3rd largest PCS provider - 14 states and Puerto Rico - 16 of the top 100 markets . Two largest AT&T affiliates - SunCom brand name - TDMA technology - Like culture ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ Combined Highlights of Merger TeleCorp ------------ ================================================================================ . Corporate headquarters - Arlington, VA . 332,000 SunCom subscribers pro forma w/ Tritel as of 4/30/00 . 1,977 total employees (1Q `00) . 1,524 cell sites (1Q `00) . 11 switches (1Q `00) . 96 SunCom stores (1Q `00) . 1596 retail outlets (1Q `00) ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ Wireless Upside - Mobile Data TeleCorp ------------ ================================================================================ . Mobile data will drive future growth - 35% Internet penetration in U.S. - Mobile data is next step in wireless connectivity - Explosion of demand overseas [PHOTO] . Huge upside for TeleCorp in mobile data - Large contiguous footprint with merger - Affiliation with AT&T . Strategy - Leverage relationship with Lucent and AT&T - Offer two-way data messaging services (SunBurst Info Services) - Pursue full two-way data and Internet applications (WAP) - Completed data services trial in January and February 2000 o First two-way short message service (SMS) and wireless Internet applications trial on TDMA network w/ Nokia and Lucent ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ Abundant Spectrum Capacity TeleCorp ------------ ================================================================================ . Spectrum increasing in value - TeleCorp in its major markets holds more spectrum than its competitors . 30-35 MHz of spectrum - San Juan - New Orleans - Little Rock - Memphis . Tritel averages 27 MHz . Swap markets average 30 MHz . Capacity for increased traffic, new subscribers and data services ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ TeleCorp's Experienced Leadership TeleCorp ------------ ================================================================================ Gerald T. Vento* Chairman & CEO [Sprint Spectrum Logo] Thomas H. Sullivan* Executive Vice President & Chief Financial Officer [McDermott, Will & Emery Attorneys at Law Logo] Julie Dobson* Chief Operating Officer [Bell Atlantic Logo] Steve Chandler* General Manager Memphis [Bell South Logo] [AT&T Logo] Randy Johnson* General Manager Little Rock [Alltel Logo] Andy Hearn* General Manager New Orleans [Alltel Logo] Raul Burgos* General Manager Puerto Rico [Nextel Logo] Mitch Johnson* General Manager New England [Alltel Logo] . Company management averages over 10 years industry experience, including local market expertise . Fully staffed with over 1200 employees . Management owns 12% of TeleCorp equity (Post-IPO) * Formerly of ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ Targeted Distribution TeleCorp ------------ ================================================================================ - -------------------------------------------------- SunCom Retail Stores - -------------------------------------------------- . 56 company owned retail stores . In-line stores and kiosks in high traffic malls [Photo] - -------------------------------------------------- Indirect Doors - -------------------------------------------------- . Local dealers and agents . National and regional retailers . 1366 indirect locations [Best Buy Logo] [Circuit City Logo] [Office Depot Logo] [Staples Logo] [Radio Shack Logo] - -------------------------------------------------- Direct Sales - -------------------------------------------------- . 103 account execs . 1-800-SunCom-1 . www.SunComShop.com [Photo] - -------------------------------------------------- AT&T - -------------------------------------------------- . National account program [AT&T Logo] ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ Network Build - Ahead of Schedule TeleCorp ------------ ================================================================================
Jun 1999 Dec 1999 YE 2000 -------- -------- ------- Markets 15 major, added: 26 total, added: 39 total, launching: New Orleans, Baton Lafayette, Fort Smith, Rouge, Memphis, Houma, Alexandria, Little Rock, San Fayetteville, Beaumont, Columbia/ Juan and New Ponce, Arecibo Jefferson City, England and more Evansville and more Cumulative 10.5 million 11.0 million 12.3 million Launched POPs Launched 64% 66% 74% POP Coverage Cumulative 495 741 1,350 Cell Sites Cumulative 5 5 7 Switches
================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ Operational Milestones (1Q `00) TeleCorp ------------ ================================================================================ . Launched 28 markets in 14 months (30 markets by 5/05/00) . Signed up over 254,000 subscribers (4/30/00) - Pro forma w/ Tritel over 332,000 subscribers (4/30/00) . Carried 310 million minutes on the net work year to date (vs. total of 286 million minutes in all of `99) with a dropped call rate of less than 1%. . Generated $55.4 million in revenue . Produced $67 ARPU, excluding roaming revenue . Counted 56 SunCom corporate stores and 1310 additional retail doors . Completed two data services trials in January and February 2000 . Launched SunBurst Information Services ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ Financial Highlights TeleCorp ------------ ================================================================================ . "Best of both worlds" business model - Strong urban PCS economics: o 254,000+ subscribers (4/30/00) o $67 ARPU (1Q `00) o 320 MOU/month/subscriber (1Q '00) - High margin roaming revenue o 57 million roaming minutes (1Q `00) o 39 million visitors per year . Capitalize on robust subscriber growth and roaming minutes by: - Accelerating capital deployment - Increasing investment in capacity and coverage ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ Accelerating Growth Drivers 1999 TeleCorp ------------ ================================================================================ Subscribers [Chart] EDGAR REPRESENTATION OF DATA POINTS USED IN GRAPH ------------------------------------------------- Subscribers Financial Quarter (in thousands) ----------------- -------------- 1Q99 8.8 2Q99 30.9 3Q99 75.7 4Q99 142.2 1Q00 228.0 Roaming MOUs [Chart] EDGAR REPRESENTATION OF DATA POINTS USED IN GRAPH ------------------------------------------------- Roaming MOUs Financial Quarter (in millions) ----------------- -------------- 1Q99 6.0 2Q99 27.0 3Q99 37.0 4Q99 39.0 1Q00 57.0 ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ Income Statement TeleCorp ------------ ================================================================================
($ in millions) 2Q99 3Q99 4Q99 YE99 1Q00 - ------------------------------------------------------------------------------------- Service Revenue $ 5.7 $ 12.7 $ 22.4 $ 41.3 $ 36.9 % of Total Revenue 33% 47% 57% 47% 66% Roaming Revenue 7.6 9.5 10.1 29.0 11.5 % of Total Revenue 44% 35% 25% 33% 21% Equipment Revenue 3.8 4.7 7.0 17.4 7.0 % of Total Revenue 23% 18% 18% 20% 13% --------------------------------------------------------- Total Revenues $ 17.1 $ 26.9 $ 39.5 $ 87.7 $ 55.4 Cost of Revenues 7.4 13.0 16.2 39.3 19.0 Operations * 7.8 10.4 8.6 34.5 10.8 SG&A * 25.3 35.4 54.7 133.4 57.0 --------------------------------------------------------- EBITDA * ($23.4) ($31.9) ($40.0) ($119.5) ($31.4) Depreciation and Amortization 13.7 18.3 20.3 55.1 23.5 Operating Income (Loss) * ($37.1) ($50.2) ($60.3) ($174.6) ($54.9)
* Excludes Non-cash Stock Compensation ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ Committed Capital (3/31/00) TeleCorp ------------ ================================================================================ ($ in millions) IPO & Concurrent $ 253 Cash Equity $ 245 Non-Cash Equity $ 108 Bank Debt $ 560 Discount Notes $ 328 Vendor Financing $ 115 Total $1,609 ------ * - Does not include merger or exchange with AT&T ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ Investment Considerations TeleCorp ------------ ================================================================================ . Dramatic growth in wireless continues . Largest AT&T Wireless affiliate, backed by equity ownership - Exclusivity, Brand, Roaming, Coverage . Attractive market footprint covering 16.7 million POPs, 35 million POPs Pro forma . Successfully launched in all major markets . Abundant spectrum in major markets . Designated entity status provides growth opportunity . Experienced and incentivized management team . Scale and scope with Tritel merger ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ TeleCorp ------------ ================================================================================ A joint proxy statement/prospectus will be filed by TeleCorp PCS, Inc. ("TeleCorp") and Tritel, Inc. ("Tritel") with the Commission as soon as practicable. WE URGE INVESTORS TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE COMMISSION, BECAUSE THEY CONTAIN IMPORTANT INFORMATION. Investors and security holders may obtain a free copy of the joint proxy statement/prospectus and other documents filed by TeleCorp and Tritel with the Commission at the Commission's web site at www.sec.gov. The joint proxy statement/prospectus and other documents filed with the Commission by TeleCorp may also be obtained for free from TeleCorp by directing a request to TeleCorp PCS, Inc., 1010 N. Glebe Road, Suite 800, Arlington, VA 22201, telephone: (703) 236-1100. In addition, the joint proxy statement/prospectus and other documents filed with the Commission by Tritel may be obtained for free from Tritel by directing a request to Tritel, Inc., 111 E. Capitol Street, Suite 500, Jackson, MS 39201, Attention: Shareholder Relations, telephone: (601) 914-8000. EXECUTIVE OFFICERS, DIRECTORS AND EMPLOYEES OF TELECORP MAY SOLICIT PROXIES FROM TELECORP SHAREHOLDERS IN FAVOR OF THE TRANSACTIONS CONTEMPLATED ABOVE. INFORMATION CONCERNING THE INTERESTS OF THE PARTICIPANTS IN THE SOLICITATION IS INCLUDED IN THE CURRENT REPORT ON FORM 8-K/A FILED WITH THE COMMISSION BY TELECORP PCS, INC. ON MARCH 10, 2000. ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ------------ TeleCorp ------------ ================================================================================ Safe Harbor - ----------- Except for historical information, the matters discussed in this presentation that may be considered forward-looking statements could be subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected. These include timing and success of regulatory approval and uncertainties in the market, competition, legal and other risks detailed in TeleCorp PCS, Inc.'s registration statement filed with the SEC on Form S-1, as amended or supplemented (file no. 333-81813) and Tritel, Inc.'s registration statement filed with the SEC on Form S-1, as amended or supplemented (file no. 333-91207). TeleCorp PCS, Inc. and Tritel, Inc. assume no obligation to update information in this presentation. ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network ================================================================================ ------------ TeleCorp ------------ NASDAQ National Market: TLCP ================================================================================ [LOGO]SunCom [LOGO]AT&T - ----------------------------------- Member of the AT&T Wireless Network -----END PRIVACY-ENHANCED MESSAGE-----