NEW YORK-Nextel International Inc., Seattle, plans to sell $300 million in 10-year senior discount notes to help with expansion plans, including construction of its integrated Dispatch Enhanced Networks in Argentina, Brazil, Mexico, Peru and the Philippines.
The company plans its first commercial launch of iDEN service by mid-year, in Sao Paulo. Of the countries Nextel is planning to enter, Brazil has the largest number of potential subscribers and ranks close to the top in terms of pent-up demand, according to Moody’s Investors Service. Moody’s assigned speculative grade ratings of Caa1 to the planned debt issue and to $500 million in outstanding 13 percent senior discount notes due 2007. Other available financing includes a $400 million vendor financing agreement with Motorola Inc., which is supplying the iDEN network.
“Like its parent company … and Craig McCaw’s other public company, Nextlink, Nextel International will be fairly aggressive in its expansion as it proves successful in executing its business plan, Moody’s believes.”
