KIRKLAND, Wash.-Nextel Partners Inc. said it completed the redemption of $146.3 million aggregate principal amount at maturity of its 12.5 percent senior notes due Nov. 15, 2009. The carrier noted the total redemption price of $164.5 million including accrued interest was funded with available cash.
Nextel Partners added that it has cut its weighted average cost of debt by 50 basis points over the past year from 5.9 percent to 5.4 percent, and has lowered its annualized cash interest obligation by approximately $18.3 million. This is somewhat significant as the carrier is in the midst of a contentious appraisal process determining a fair market value for Sprint Nextel Corp.’s planned acquisition of the 68 percent of Nextel Partners it does not currently own. The deal is expected to close in early February.
Nextel Partners’ stock was trading down 2 cents per share early Tuesday at $25.49 per share.
