Nextel to launch $4 billion revolver Monday

By Sara Rosenberg

New York, June 23 - Nextel Communications Inc. is scheduled to hold a bank meeting on Monday for a proposed $4 billion revolving credit facility, according to market sources. JPMorgan and Citigroup are the lead banks on the deal, with JPMorgan listed on the left.

Furthermore, the company is looking to amend its $2.2 billion term loan E through a majority vote, a source added, however, the specifics of the amendment are not being revealed at this time.

No price talk on the revolver was immediately available.

Proceeds from the new revolver will be used to replace the company's existing revolver and term loan A.

As of March 31, the Reston, Va., wireless company's credit facility provided for total secured financing capacity of up to $4.915 billion, consisting of a $1.275 billion revolver, of which $116 million has been borrowed and $26 million has been committed under letters of credit, and $3.64 billion in two classes of term loans, according to a form 10-Q previously filed with the Securities and Exchange Commission.

Beginning April 1, the amount of the revolving loan commitment was and will be reduced by $75 million every quarter continuing through March 31, 2005, at which time the quarterly reductions are supposed to increase to $93.75 million continuing through March 31, 2007. Starting April 1, 2007, the quarterly reductions decrease to $75 million.

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