By Paul A. Harris
St. Louis, March 15 - Nextel Communications Inc. sold $486.2 million proceeds of 10-year senior notes (B2/B+) Monday at 97.243 with a 5 7/8% coupon to yield 6¼%, a syndicate source said.
Price talk was in the area of 6%.
The issue had a face amount of $500 million.
Credit Suisse First Boston and JP Morgan were the bookrunners for the off-the-shelf issue. Wachovia Securities, Scotia Capital, Citigroup, Deutsche Bank, SG Cowen and Banc of America Securities were co-managers.
Proceeds will be used for general corporate purposes including the tender for a portion of the company's 9½% notes.
The issuer is a Reston, Va.-based wireless communications service provider.
| Issuer: | Nextel Communications Inc.
|
| Amount: | $500 million
|
| Proceeds: | $486.215 million
|
| Maturity: | March 15, 2014
|
| Security description: | Senior notes
|
| Bookrunners: | | Credit Suisse First Boston, JP Morgan
|
| Coupon: | 5 7/8%
|
| Price: | 97.243
|
| Yield: | 6¼%
|
| Spread: | 249 basis points
|
| Call features: | Callable after March 15, 2009 at 102.938, 101.469, 100.734, par on or after March 15, 2012
|
| Equity clawback: | Until March 15, 2007 at 105.875 for up to 35%
|
| Pricing date: | March 15
|
| Settlement date: | March 18
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Price talk: | 6% area
|
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