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Nextel exchanges 99% of 0% preferred stock
New York, April 5 - Nextel Communications, Inc. said it exchanged its 242,545 shares or 99% of its zero-coupon convertible preferred stock due 2013 for series B zero-coupon convertible preferred stock due 2013 under its exchange intended to encourage early conversion.
The exchange expired at 5 p.m. ET on March 31.
The exchange was carried out alongside a consent solicitation.
Nextel announced the offer on March 3.
The changes proposed to the preferreds in the consent solicitation - Nextel announced on March 17 that holders of all the preferreds had consented - add a special dividend of $30 per preferred payable on conversion into stock and move up the first call date to April 30, 2005 from Dec. 23, 2005. Some rights would also be eliminated.
Nextel is making the changes through a consent solicitation and was offering $15 per preferred share to holders who consented by the consent deadline.
So that holders can receive the benefits of the proposed amendments immediately, the Reston, Va., wireless phone company is also offering to exchange the existing preferreds into series B zero-coupon convertible preferred stock due 2013 with identical terms to those that the existing preferreds would have after the amendments, including the $30 special dividend payable on conversion.
The exchange is subject to Nextel receiving the necessary 66 2/3% consents to amend the old preferreds.
The amendment to the existing preferreds is also subject to the consents and to approval by stockholders at the next annual meeting. The series B preferreds can pay the special conversion dividend before the annual meeting.
Bear, Stearns & Co. Inc. is solicitation agent for the consent solicitation only (800 308-6311). Georgeson Shareholder Communications, Inc. is information agent for the exchange (877 278-4751).
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