RESTON, Va.-Nextel Communications Inc. announced that Nextel Finance Co., a wholly owned subsidiary of the company, received commitments for a $2.2 billion secured term loan facility to refinance its existing $2.2 billion secured term loan E.
Nextel said the new loan will have a five-year term and will be subject to terms and conditions of Nextel’s existing $4 billion revolving credit facility. The loan is expected to close by the end of this month.
“The refinancing of our term loan E is expected to reduce Nextel’s interest costs by about $30 million in 2005 while maintaining our financial flexibility,” said Paul Saleh, Nextel’s executive vice president and chief financial officer.
