The transaction will be structured as a merger and will increase Alamosa’s licensed population by 22 percent from 12.5 million residents to 15.3 million residents. Completion of this transaction is subject to certain conditions including expiration of the statutory waiting period under federal anti-trust laws.
We are pleased to announce our latest transaction which will create a contiguous mid-continent footprint by connecting markets in our existing Texas territory with our recently acquired markets in Missouri and Kansas, said David E. Sharbutt, chairman and chief executive officer of Alamosa. Southwest manages a very attractive footprint with 18 markets in Oklahoma, Texas, Arkansas and Kansas.
Several of the key roaming markets included in the Southwest transaction are adjacent to major Sprint PCS markets, including Dallas-Forth Worth, Oklahoma City, Tulsa, Kansas City and Little Rock, continued Sharbutt. Additionally, 52 colleges and universities and four military bases are located within Southwest’s markets. We expect this transaction to produce significant value for our shareholders as we expand our market presence into these attractive footprints and continue to gain greater economies of scale.
Southwest has a management agreement with Sprint PCS to service approximately 2.8 million residents with the exclusive right to provide digital wireless mobile communications network products and services under the Sprint PCS brand name. As of December 31, 2000, Southwest had launched service in 18 markets covering approximately 1.5 million residents and had over 40,000 customers. The territory served by Southwest includes several major highways and interstates covering over 1,400 highway miles. This extensive highway coverage represents an excellent opportunity for immediate roaming revenue for Alamosa, concluded Sharbutt.
Southwest shareholders will exchange 100 percent of their common shares of Southwest for 11.1 million shares of Alamosa common stock and $5 million. Alamosa will assume approximately $80 million in debt.
