Nextel Partners Inc. said it has accepted for purchase approximately $352.5 million aggregate principal amount of outstanding 11-percent senior notes due 2010, representing approximately 98.8 percent of the total principal amount of the notes. The carrier paid $1,123.44 per $1,000 principal value at maturity for the notes tendered before May 11 for a total consideration of approximately $396.1 million, excluding accrued and unpaid interest.
The tender offer, which was originally announced April 28, is scheduled to expire May 25 with those offered before the deadline receiving $1,088.44 per $1,000 principal value at maturity.
The carrier also reported that its Nextel Partners Operating Corp. subsidiary had refinanced an existing $375 million tranche B term loan with a new $700 million tranche C term loan, with borrowings under the new term loan used to repay both the original loan and the tender offer for the 11-percent notes. J.P. Morgan Securities Inc. and Morgan Stanley Senior Funding Inc. acted as joint lead arrangers and joint bookrunners on the new term loan.
Moody’s Investor Services assigned a B1 rating to the tranche C term loan and confirmed its senior implied and other ratings with a positive outlook for Nextel Partners.
“The positive ratings outlook reflects the remarkable revenue and operating cash flow growth that Nextel Partners has experienced over the past few quarters,” Moody’s noted in a statement. “Moody’s believes that Nextel Partners is well positioned to continue to outperform its peers in operating performance, despite the significant challenges that lay ahead.”
