Nextel Partners to redeem 12½% notes with stock-sale proceeds

New York, Oct. 30 - Nextel Partners, Inc. (Caa1/CCC+) said that it had filed a registration statement with the Securities and Exchange Commission for a public offering of 33 million shares of its class A common stock, and said it plans to use the proceeds of the equity offering to redeem approximately 32% of the outstanding principal amount of its 12½% senior discount notes, or about $67.7 million principal amount at maturity, and for working capital and general corporate purposes.

Nextel Partners, a Kirkland, Wash.-based affiliate of Nextel Communications Inc. which offers Nextel's wireless service to customers in 31 states, did not specify a timeframe for the planned redemption of the 12½% notes.

The company said that of the 33 million shares to be offered, 10 million shares will be newly issued class A shares offered by Nextel Partners. The remaining 23 million class A shares will be offered by DLJ Merchant Banking Partners II, LP, Madison Dearborn Capital Partners II, LP and Motorola, Inc. In addition, some of these selling stockholders have granted the underwriters an option to purchase up to an additional 4.95 million class A shares to cover over-allotments. Nextel Partners will not receive any of the proceeds from the shares offered by the selling stockholders.

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