EXHIBIT 2.1
July 16, 2002
Mr. Xxxxxx Xxxxx
Price Communications Corporation
00 Xxxxxxxxxxx Xxxxx
Xxx Xxxx, XX 00000
Dear Mr. Price:
RE: NEW LP FINANCING
We refer to our conversation on July 3, 2002 with respect to the $350
million debt financing referred to in the Transaction Agreement dated December
18, 2001 (as amended by an amendment dated April 15, 2002) among Price
Communications Corporation, Price Communications Cellular Inc., Price
Communications Cellular Holdings, Inc., Price Communications Wireless, Inc.,
Cellco Partnership and Verizon Wireless of the East LP (the "TRANSACTION
AGREEMENT"). Capitalized terms used and not defined herein shall have the
meanings given to such terms in the Transaction Agreement.
Notwithstanding the terms set forth in the Transaction Agreement, for
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree that:
(1) New LP and Cellco are hereby released from their obligations under
Section 2.06 of the Transaction Agreement.
(2) Each of Cellco, New LP and each of the Price Corporations hereby
agrees to use its commercially reasonable efforts to obtain the New LP Financing
prior to the Closing from Xxxxxxx Xxxxx Credit Partners L.P., which has
indicated its willingness to arrange such financing on a best efforts basis, or
such other financial institution as to which the parties hereto may mutually
agree, such agreement not to be unreasonably withheld. The terms of such New LP
Financing shall be substantially as set forth in the draft term sheet dated as
of July 15, 2002, provided by Xxxxxxx Sachs Credit Partners L.P. or on such
other terms (which shall in any event contain the terms set forth in Section
2.06(a)(ii) of the Transaction Agreement) as the parties hereto may mutually
agree, such agreement not to be unreasonably withheld.
(3) Section 14.01 of the Transaction Agreement is hereby amended by
inserting the following new condition at the end thereof:
"(g) New LP shall have obtained the New LP Financing."
(4) Such New LP Financing as may be obtained by New LP prior to the
Closing (including, without limitation, any financing for which Xxxxxxx Xxxxx
Credit Partners L.P. is the lead arranger) shall constitute the "Base Line
Financing" for purposes of the Transaction Agreement, and such Base Line
Financing shall be used for purposes of determining the "Rate Adjustment
Percentage" pursuant to the New LP Agreement and the "Excess Financing Cost"
pursuant to the Transaction Agreement.
Please confirm your agreement with the foregoing by signing and
returning to the undersigned the duplicate copy of this letter enclosed
herewith.
This letter agreement shall be governed by and construed in accordance
with the law of the State of New York.
Very truly yours,
CELLCO PARTNERSHIP
By: /s/ Xxxxxxxx Xxxxxxx
----------------------------------
Name: Xxxxxxxx Xxxxxxx
Title: VP-Business Development
VERIZON WIRELESS OF THE EAST LP
By: Verizon Wireless of Georgia LLC, as
General Partner
By Cellco Partnership, as sole member of
Verizon Wireless of Georgia LLC
By: /s/ Xxxxxxxx Xxxxxxx
----------------------------------
Name: Xxxxxxxx Xxxxxxx
Title: VP-Business Development
Accepted and agreed as of the date first written above:
PRICE COMMUNICATIONS CORPORATION.
By: /s/ Xxxxxx Xxxxx
---------------------
Name: Xxxxxx Xxxxx
Title:
2
PRICE COMMUNICATIONS CELLULAR INC.
By: /s/ Xxxxxx Xxxxx
------------------------
Name: Xxxxxx Xxxxx
Title:
3
PRICE COMMUNICATIONS CELLULAR HOLDINGS, INC.
By: /s/ Xxxxxx Xxxxx
----------------------------
Name: Xxxxxx Xxxxx
Title:
PRICE COMMUNICATIONS WIRELESS, INC.
By: /s/ Xxxxxx Xxxxx
----------------------------
Name: Xxxxxx Xxxxx
Title:
4
