RESTON, Va.-Nextel Communications Inc. initiated a cash tender offer and consent solicitation for the entire $858.8 million outstanding principal amount of its 9.5-percent senior serial redeemable notes due 2011.
Total compensation for the notes will include a consent payment of $30 per $1,000 principal amount of notes, payable only to holders who tender their notes and validly deliver their consent prior to the expiration of the solicitation on March 29. Holders who tender their notes after the consent solicitation deadline will not receive the $30 consent payment.
In conjunction with the tender offer, which is being handled by Bear, Stearns & Co. Inc., Nextel said it was soliciting consents to effect certain proposed amendments to the indenture governing the notes that would eliminate substantially all of the restrictive covenants and would amend certain other provisions contained in the indenture. Holders tendering their notes will be required to consent to the amendments, which will require the consent of a majority of the principal amount of outstanding notes to be approved.
Nextel also announced it was offering $500 million of 5.95-percent senior serial redeemable notes due 2014 in a public offering. The carrier said it expects to use net proceeds from the offering to fund network expansion, strategic investments, working capital needs, debt service requirements and other general corporate purposes.
