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Nextel receives consents to amend 0% preferred stock
New York, March 17 - Nextel Communications, Inc. said it has receive the necessary consents as part of its consent solicitation and exchange intended to encourage early conversion of its zero-coupon convertible preferred stock due 2013 into class A common stock.
By the consent deadline of 5 p.m. ET on March 16, holders of 100% of the preferreds had agreed to the indenture modifications.
Nextel announced the offer on March 3.
The proposed changes to the preferreds would add a special dividend of $30 per preferred payable on conversion into stock and move up the first call date to April 30, 2005 from Dec. 23, 2005. Some rights would also be eliminated.
Nextel is making the changes through a consent solicitation and offering $15 per preferred share to holders who consented by the consent deadline.
So that holders can receive the benefits of the proposed amendments immediately, the Reston, Va., wireless phone company is also offering to exchange the existing preferreds into series B zero-coupon convertible preferred stock due 2013 with identical terms to those that the existing preferreds would have after the amendments, including the $30 special dividend payable on conversion.
The exchange is subject to Nextel receiving the necessary 66 2/3% consents to amend the old preferreds.
The amendment to the existing preferreds is also subject to the consents and to approval by stockholders at the next annual meeting. The series B preferreds can pay the special conversion dividend before the annual meeting.
The exchange ends at 5 p.m. ET on March 31.
Bear, Stearns & Co. Inc. is solicitation agent for the consent solicitation only (800 308-6311). Georgeson Shareholder Communications, Inc. is information agent for the exchange (877 278-4751).
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