Unfortunately Nextwave isnt the only one who is raising money....Nextel is looking for cash.
Nextel Seeks $5 Bln Credit Line From Ch
by: nbfm (45/M/san diego)
38883 of 38898
Nextel Seeks $5 Bln Credit Line From Chase, Bank of America, TD
New York, Sept. 21(Bloomberg) -- Nextel Communications Inc., a provider of wireless phone services in the U.S., is lining up a $5
billion bank loan to pay for its plan to acquire assets from NextWave Telecom Inc., people familiar with the transaction said.
Nextel said in August that it has the backing of U.S. Federal Communications Commission staff to buy wireless licenses from the
bankrupt NextWave for about $2.1 billion.
''Reading between lines, I can see them attempting to buy $2 billion to $3 billion,'' worth of wireless licenses, said Chris Larsen, an
analyst at Prudential Securities Inc.
Chase Manhattan Corp., Bank of America Corp. and Toronto Dominion Bank are arranging the loan. The banks have pledged to try
and raise the money, though they aren't committed to lending it to the company if there isn't enough investor demand.
Nextel's existing $3.3 billion in credit lines will be absorbed by the new loans. The Reston, Virginia-based company will likely pay higher
interest on its loans than it did last time, when it agreed to pay between 250 basis points and 275 basis points over the London interbank
offer rate.
Industrial companies in the U.S. with the same ''B'' credit rating pay between 306 basis point and 363 basis points over Libor,
according to Portfolio Management Data.
Nextel's outstanding 9 3/4 percent bonds that mature in 2007 were quoted recently at about 70 3/4 to yield 10.5 percent, or 460 basis
points more than U.S. bonds.
Expectations Nextel's loans would be refinanced pushed up the company's debt. Its loan rose three points the past two weeks to 99.
Company officials didn't return phone calls.
Sep/21/1999 15:07
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