NEXTEL Message Board - Msg: 16274006

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Technology Stocks : NEXTEL

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To: calgal who wrote (9749)	8/29/2001 10:30:25 AM
From: Rono	Read Replies (1) of 10227

Seems like a good deal to me also. Swap $857 million worth of high yield debt for $275 million worth of class A common shares (based on the closing price of 8-27-01). Nextel has effectively eliminated $109 million of annual interest payments which equates to about .14 per share, not to mention the principle issue. I wonder why Fidelity and Capital Group agreed to do this? Obviously the telecom sector is under tremendous pressure, but with nearly $5 billion in cash, I can't believe they think Nextel could actually default. Why give up $109 million of annual interest for a fraction of your principle in common shares? Just doesn't make sense to me. Anybody have any thoughts on why Fidelity and Capital Group would agree to do this? I also think it's probable these funds are selling their 21.6 million share stake, causing the recent pressure in the stock. Ron

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