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.
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Amount: | $500 million
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Proceeds: | $486.215 million
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Maturity: | March 15, 2014
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Security description: | Senior notes
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Bookrunners: | | Credit Suisse First Boston, JP Morgan
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Coupon: | 5 7/8%
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Price: | 97.243
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Yield: | 6¼%
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Spread: | 249 basis points
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Call features: | Callable after March 15, 2009 at 102.938, 101.469, 100.734, par on or after March 15, 2012
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Equity clawback: | Until March 15, 2007 at 105.875 for up to 35%
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Pricing date: | March 15
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Settlement date: | March 18
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Ratings: | Moody's: B2
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| Standard & Poor's: B+
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Price talk: | 6% area
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