Nextel tenders for 9½% notes

New York, March 17 - Nextel Communications Inc. (B2/B+) said it was beginning a cash tender offer for all $858.764 million of its outstanding 9½% senior serial redeemable notes due 2011 and was also soliciting noteholder consents to proposed indenture changes.

It set a consent deadline of 5 p.m. ET on March 29 and said that the tender offer would expire at midnight ET on April 13, with both deadlines subject to possible extension.

Notes validly tendered and not withdrawn before the consent deadline may not be later withdrawn, and consents may not be revoked after the consent deadline. Notes tendered after the consent deadline may be withdrawn at any time before the expiration of the tender offer.

Nextel, a Reston, Va.-based wireless telecommunications company, said that the total consideration to be paid for each note validly tendered by the consent deadline will be $1,142.50 per $1,000 principal amount of notes tendered and accepted for purchase, plus any accrued and unpaid interest on the notes up to, but not including, the date of payment. The total consideration includes a $30 per $1,000 principal amount consent payment. Holders tendering their notes after the consent deadline will receive the total consideration minus the consent payment, or $1,112.50 per $1,000 principal amount, plus interest.

Nextel is seeking noteholder consent to indenture amendments that would eliminate substantially all of the indenture's restrictive covenants and amend other provisions contained in the indenture. Adoption of the proposed amendments requires the consent of the holders of a majority of the principal amount of the outstanding notes. Holders who tender their notes will be required to consent to the proposed amendments and holders may not deliver consents to the proposed amendments without also tendering their notes in the tender offer.

Bear Stearns & Co. Inc. is acting as the exclusive dealer manager and solicitation agent for the tender offer and the consent solicitation (contact the Global Liability Management Group at Bear Stearns at 877 696-2327). D. F. King & Co. Inc. is the information agent (Call 212 269-5550). The depositary for the tender offer is BNY Midwest Trust Co.

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