Nextel Communications Inc. said it has received the required consents from its bondholders to complete its pending transactions with Motorola, Inc., Craig O. McCaw, OneComm Corp., American Mobile Systems Inc. and Dial Page Inc.
Nextel needed the consents because its debt-to-total capitalization ratio is higher than the 30 percent allowed under bondholder covenants.
To implement the proposed waivers and amendments, Nextel and The Bank of New York have entered into two supplemental indentures, one relating to the indenture that governs Nextel’s Senior Redeemable Discount Notes due 2003 and the other to the indenture governing Nextel’s Senior Redeemable Discount Notes due 2004, the company said.
GTE gains San Diego market
U S West Inc. has completed the trade of its San Diego cellular license for certain assets of GTE Corp.
The company needed to trade or sell the San Diego property before its proposed merger with AirTouch Communications could be approved. Both companies operated cellular systems in that market.
U S West acquired three new markets-Portland and Salem, Ore., and Oregon rural service area 1-plus assets in three of its existing markets in Albuquerque, N.M., Minneapolis and Seattle.
“Completing this trade with GTE moves us one step closer to the approval of the U S West/AirTouch merger and brings strategic new markets to our joint venture,” said Jan Peters, president of wireless operations and investments for the U S West Media Group.
Ericsson inks sat-phone deal
Ericsson Inc. signed a memorandum of understanding with PT Asia Cellular Satellite System and Lockheed Martin Corp. for development of satellite/terrestrial phones, Ericsson said. Ericsson values its portion of the agreement at $225 million. Lockheed will supply Asia Cellular Satellite with a cellular mobile satellite telecommunications system that extends throughout Asia.
