Nextel to redeem 9¾% and 12% notes

New York, Sept. 18 - Nextel Communications Inc. (B2/B+) said that it will redeem all of its $912 million principal amount of outstanding 9¾% senior serial redeemable discount notes due 2007 and all of its $274 million principal amount of outstanding 12% senior serial redeemable notes due 2008.

Nextel, a Reston, Va.-based wireless telecommunications company, said that the 9¾% notes are redeemable at Nextel's option at a redemption price equal to 102.4375% of the principal amount, plus accrued but unpaid interest. The redemption date for the 9¾% notes has been set for Oct. 31.

It said the 12% notes are redeemable at Nextel's option at a redemption price equal to 106% of the principal amount, plus accrued but unpaid interest. The redemption date for the 12% notes has been set for Nov. 1.

Nextel sold $1 billion of new 7 3/8% senior serial redeemable notes due 2015 as an add-on to the existing issue on Sept. 17.

EchoStar plans redemption of 9 3/8% notes with new-deal proceeds

New York, Sept. 18 - EchoStar Communications Corp. (Ba3/BB-) said that its EchoStar DBS Corp. subsidiary would sell approximately $1.5 billion aggregate principal amount of senior debt securities in a Rule 144A transaction, and would use the proceeds from the offering to repurchase or redeem EchoStar DBS' 9 3/8% senior notes due 2009 and other outstanding debt securities.

High yield syndicate sources heard late Thursday that EchoStar had upsized the planned offering to $2.5 billion, to be sold in three tranches.

EchoStar DBS issued $1.625 billion of the 9 3/8% notes in February 1999. They become callable in 2004.

As previously announced, EchoStar, a Littleton, Colo.-based provider of satellite TV programming, said on Aug. 18 that its Board of Directors had authorized the repurchase, "from time to time," of outstanding EchoStar Communications and EchoStar DBS debt securities up to an aggregate of $1 billion principal amount, either in the open market or through negotiated transactions. The company said that the timing and terms of such purchases would be based on market conditions and other unspecified factors.

On Sept. 4, EchoStar announced the completion of its previously announced redemption of $245 million principal amount of its 9 1/8 % senior notes due 2009, effective Sept. 3, leaving an outstanding principal amount of the notes after the redemption of $455 million.

Beverly Enterprises to redeem 9% notes

New York, Sept. 18 - Beverly Enterprises Inc. (B1/B+) said that it plans to enter into a new $225 million senior secured credit facility, and expects to raise approximately $100 million in the form of subordinated notes "on terms and conditions to be determined."

Beverly, a Fort Smith, Ark.-based nursing home operator (largest in the U.S.), said that it anticipates using the proceeds of the senior secured credit facility and subordinated notes primarily to pay existing indebtedness, including - but not limited to - the $180 million of outstanding 9% senior notes due 2006.

Station Casinos gets required consents in 8 7/8% notes tender offer

New York, Sept. 18 - Station Casinos, Inc. (B1/BB) said that the consent deadline on its previously announced tender offer for its outstanding 8 7/8% senior subordinated notes due 2008 expired as scheduled as of 5 p.m. ET on Sept. 17, without extension, and that as of that deadline, it had received valid tenders and consents to proposed indenture changes from the holders of $173.067 million principal amount of the notes (approximately 86.5% of the outstanding amount), sufficient to amend the indenture.

Station Casinos said that holders who tendered their notes and delivered consents by the consent deadline will thus receive the previously announced total consideration of the notes (including a consent payment) plus accrued and unpaid interest, and will receive payment for their notes on or about Oct. 3. The proposed amendment will not become operative until the date of the payment.

The company also said that it has received requisite consents from holders of its 8 3/8% senior notes due 2008 to a modification to the related indenture to permit certain refinancings of subordinated indebtedness.

As previously announced, Station Casinos, a Las Vegas-based gaming operator, said on Sept. 11 that it had begun a cash tender offer for any and all of its $199.9 million principal amount of outstanding 8 7/8% notes, and was also soliciting related consents from its noteholders to proposed indenture changes, which would eliminate substantially all the restrictive covenants.

Station Casinos set 5 p.m. ET on Sept. 17 as the now-expired consent deadline, and said the tender offer would expire at 12 midnight ET on Oct. 8, subject to possible extension.

It said that holders tendering their notes would be required to consent to the proposed indenture amendments and also could not deliver consents without tendering their notes.

The company said that holders validly tendering notes by the consent deadline would receive the total consideration of $1,045 per $1,000 principal amount of notes tendered, while those tendering after the consent deadline would receive $1,015 per $1,000 principal amount.

All holders validly tendering their notes will also be paid accrued and unpaid interest up to, but not including, the date of payment.

Holders who validly tender their notes by the consent deadline will receive payment on the initial settlement date, which is expected to be on or about Sept. 29 (this was subsequently announced as around Oct. 3). Holders tendering after the consent deadline would be paid after the offer expires.

Station Casinos said the offer would be subject to the satisfaction of certain requirements, including the now-fulfilled condition of the company's receipt of tenders of notes representing a majority of the principal amount of the notes outstanding. The offer is also subject to another now-fulfilled condition - receipt by the company of sufficient consents from the holders of its 8 3/8% senior notes due 2008 to an indenture modification which would permit certain refinancings of subordinated indebtedness.

The company must also achieve senior subordinated financing on acceptable terms in an amount sufficient to consummate the tender offer.

Station Casinos has engaged Banc of America Securities LLC (call the High Yield Special Products department toll-free at 888 292-0070 or collect at 704 388-4813) and Deutsche Bank Securities, Inc. to act as dealer managers and solicitation agents. D.F. King & Co., Inc. Is the information agent (call toll-free 800 628-8532 or collect at 212 269-5550).

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