J.P. Morgan and Morgan Stanley are leading a refinancing for Nextel Partners Operating Corp., a subsidiary of Nextel Partners. The financing consists of a six-year, $100 million revolver and a seven-year, $375 million term loan. The facility will be used to repay borrowings under Nextel Partners' existing $475 million credit facility and for general corporate purposes.
Pricing on the term loan is likely to be in the LIBOR plus 3% range, 150 basis points better on a weighted-average basis than the current facility, according to Alice Kang Ryder, director of investor relations for Nextel Partners. The existing facility is led by Credit Suisse First Boston, with The Bank of New York as the documentation agent and Bank of Montreal as the administrative agent. Ryder said the company chose J.P. Morgan and Morgan Stanley because of their knowledge of the market and ability to advise on the transaction. A Morgan Stanley spokesman said this is the first time it is working with Nextel Partners on a loan, although they have worked together previously on bond and equity offerings. A J.P. Morgan spokesman did not return calls.