25.01.2005 18:13:00
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Nextel Announces Plans to Refinance Secured Term Loan; Initial Interes
Business Editors/Telecommunications Writers
RESTON, Va.--(BUSINESS WIRE)--Jan. 25, 2005--Nextel Communications Inc. (NASDAQ:NXTL) today announced that its wholly-owned subsidiary, Nextel Finance Company, has received definitive commitments to enter into a new $2.2 billion secured term loan facility, the proceeds of which will be used to refinance its existing $2.2 billion secured term loan E. Under the terms of the loan commitment, the initial interest rate on the new term loan will be LIBOR plus 75 basis points, reflecting a reduction of 150 basis points from the rate on the existing term loan E. The interest rate on the new term loan automatically will adjust to the applicable rate for our existing revolving credit facility, currently LIBOR plus 100 basis points, on Dec. 31, 2005 or earlier if the merger agreement between Nextel and Sprint is terminated. The new term loan will have a five-year term and will be subject to the terms and conditions of Nextel's existing $4 billion revolving credit facility, which will remain unchanged. Completion of the refinancing is subject to certain conditions including the completion of definitive loan agreements. Nextel expects the new term loan transaction to close by the end of January.
"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.
About Nextel
Nextel Communications, a FORTUNE 200 company based in Reston, Va., is a leading provider of fully integrated wireless communications services and has built the largest guaranteed all-digital wireless network in the country covering thousands of communities across the United States. Today 95 percent of FORTUNE 500(R) companies are Nextel customers. Nextel and Nextel Partners, Inc. currently serve 297 of the top 300 U.S. markets where approximately 260 million people live or work.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. A number of the matters and subject areas discussed in this press release that are not historical or current facts deal with potential future circumstances and developments, including the completion of the term loan E refinancing and the anticipated benefits thereof. The discussion of such matters and subject areas is qualified by the inherent risks and uncertainties surrounding future expectations generally, and also may materially differ from Nextel's actual future experience involving any one or more of such matters and subject areas. Nextel has attempted to identify, in context, certain of the factors that it currently believes may cause actual future experience and results to differ from Nextel's current expectations regarding the relevant matter or subject area. Such risks and uncertainties include those described from time to time in Nextel reports filed with the SEC, including Nextel's annual report on Form 10-K for the year ended December 31, 2003 and in the first, second and third quarter 2004 Form 10-Qs. This press release speaks only as of its date, and Nextel disclaims any duty to update the information herein.
--30--JS/ph*
CONTACT: Nextel Communications, Inc., Reston Investors: Paul Blalock, 703-433-4300 or Media: Audrey Schaefer, 240-876-1588
KEYWORD: VIRGINIA INDUSTRY KEYWORD: BANKING TELECOMMUNICATIONS SOURCE: Nextel Communications, Inc.
Copyright Business Wire 2005
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