NEW YORK, Jan 21 (Reuters) - Wireless telephone company Nextel Communications Inc. (NASDAQ: NXTL) said on Friday it signed a deal to issue $1 billion in notes that could help fund an expected bid for spectrum licenses stripped from bankrupt wireless carrier NextWave Telecom Inc.
Reston, Va.,-based Nextel said it issued $1 billion of 5-1/4 percent convertible senior notes due Jan. 15, 2010 in a private placement. The company said it also granted the underwriters the right to purchase up to $200 million of additional notes.
The notes are convertible into Nextel common stock at $148.80 per share, prior to redemption or maturity at the noteholder's option. Nextel stock was off 4-1/8 at 120 on Friday on Nasdaq.
Nextel said it plans to use proceeds for general corporate purposes, including strategic investments and capital expenditures.
Earlier this month, the Federal Communications Commission revoked NextWave's licenses to offer wireless service across the country, including Los Angeles, New York and Chicago. The FCC said it would re-auction the licenses in July.
Analysts have said Nextel is well positioned to win the licenses at auction.
NextWave, based in Hawthorne, N.Y., won the license in 1996 governmental auctions for more than $4.8 billion. But the carrier, which is fighting the FCC's action in court, was unable to raise money to cover its bids. |
