MCLEAN, Va.-Nextel Communications Inc. said it has secured $1.66 billion in bank financing for the nationwide expansion of the company’s integrated wireless communications network.
The company also last week launched service in Boston, several weeks ahead of schedule. Nextel’s network allows subscribers access to a digital wireless service, two-way instant conferencing and paging in a single handset.
Nextel’s $1.66 billion senior secured bank credit facility is divided into a $1.09 billion revolving loan, a $250 million term loan, and a $320 million term loan for institutional investors, the company said. The credit facility was arranged by Chase Securities Inc., J.P. Morgan Securities Inc. and Toronto-Dominion Securities Inc. The oversubscription enabled Nextel to increase the size of the loan package by more than $100 million from its original target.
Nextel plans to launch service in Detroit, Atlanta and Denver by the end of this year.
