Nextel to redeem remainder of 9.95% notes, also 4¾% convertibles

New York, Oct. 17 - Nextel Communications Inc. (B2/B+) said that it plans to redeem the balance of its outstanding 9.95% senior serial redeemable discount notes due 2008. It concurrently announced plans to redeem all of its remaining outstanding 4¾% convertible senior notes due 2007.

Nextel said that the formal notices of the redemptions would be sent to noteholders within the next few days and added that it would expect to complete the redemptions within about 30 days of the delivery of the formal notices.

Nextel said that as of Sept. 30, it had about $999 million of the 9.95% notes currently outstanding (out of the $1.627 billion originally issued in February 1998), and said that after the previously announced redemption of $500 million of the notes later this month, about $499 million would remain outstanding and subject to the final redemption action. The notes are redeemable at Nextel's option at 104.975% of the principal amount, plus accrued but unpaid interest up to the date of redemption. After that redemption, all of the 9.95% notes will have been retired, with none remaining outstanding.

Nextel said that it had about $284 million principal amount of the 4¾% convertible notes outstanding as of Sept. 30 out of the $500 million originally issued in June 1999. The company said that the convertible notes are redeemable at Nextel's option at 102.036% of the outstanding principal amount plus accrued but unpaid interest up to the date of redemption.

As previously announced, Nextel, a Reston, Va.-based wireless telecommunications operator, said on Sept. 24 that it would redeem $500 million in principal amount of its 9.95% notes out of the amount estimated still outstanding (Nextel estimated that $1.293 billion of the notes were outstanding as of June 30, an amount further reduced to current levels during the third quarter).

Nextel said the notes would be redeemed on Oct. 24 at a price of 104.975% of the principal amount, plus accrued but unpaid interest.

The planned redemption of the 9.95% notes and the 4¾% convertible notes is the latest in a series of debt redemption moves recently undertaken by Nextel. The company separately said on Sept. 18 that it would redeem all of its $912 million principal amount of outstanding 9¾% senior serial redeemable discount notes due 2007 on Oct. 31 at a price of 102.4375% of their principal amount, plus interest, and would redeem all of its $274 million principal amount of outstanding 12% senior serial redeemable notes due 2008 on Nov. 1, at 106% of the principal amount, plus interest.

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