MCLEAN, Va.-Nextlink Communications Inc. and equity firm Forstmann Little & Co. announced they signed a commitment letter under which Forstmann Little will purchase $400 million in Nextlink convertible preferred stock with a conversion price of $63.25 per share and a 3.75-percent dividend.
This investment, coupled with the firm’s investment last year of $850 million, means Forstmann Little’s aggregate preferred equity now will be convertible into approximately 10 percent of Nextlink’s fully diluted common shares before the pending business combination of Nextlink and Concentric Network Corp.
The transaction is expected to be completed by June 30, Nextlink said.
