Credit Suisse First Boston, Bank of Montreal, andTD Securities have reportedly landed the leads on a $600 million credit for Nextel Partners after bids went out on the loan early this week. Market sources said the company selected the trio to arrange a $600 million credit that will replace its existing $425 million deal. The old credit comprises a pro rata piece priced at LIBOR plus 4 1/4 % and an institutional tranche priced at LIBOR plus 4 3/4 %. A banker said price talk is LIBOR plus 3 1/4 % on the pro rata and LIBOR plus 3 3/4 % on the term loan. Officials at CSFB would not comment on the structure of the deal.
The leads on the original deal were Donaldson, Lufkin & Jenrette (now CSFB, and still an investor in the company), BMO, Barclays Capital and Bank of New York. TD was a participant on that deal.
Alice Kang, director of investor relations, would not confirm the banks selected to lead the credit, but confirmed that the company is in talks with CSFB, BMO, and TD Securities among others. "We are still working on the structure," she said. Kang noted that the company is looking for a more aggressive price structure compared to pricing on the existing line, which was signed in 1999. "Back then we were paying 14% on our bonds, now we can get a deal done at 11%," she said, explaining that banks are refinancing a much different credit.