Sprint Nextel to Buy Mobile Affiliate for $6.5 Billion

Sprint Nextel Corp. has agreed to buy the portions of Nextel Partners Inc. it doesn't already own for $6.5 billion, ending what has been four months of in-fighting over what Nextel Partners is worth.

Nextel Partners is Sprint Nextel’s largest mobile-telephone affiliate.

Sprint said the offer of $28.50 per share was based on the average assessment of two appraisers.

Upon news of the buyout, Standard & Poor's Ratings Services affirmed its 'A-' corporate credit rating on Sprint Nextel and its subsidiaries. All ratings on Nextel Partners Inc., including the 'BB' corporate credit rating, remain on CreditWatch with positive implications, the service said.

"These actions follow the companies' announcement that $28.50 per share is the price at which Sprint Nextel will purchase Nextel Partners' class A common stock under the put right initiated by Nextel Partners following the Sprint Nextel merger," said Standard & Poor's credit analyst Eric Geil.

The outlook on Sprint Nextel is stable. The ratings on Nextel Partners were placed on CreditWatch on Oct. 25, 2005, following the exercise of the put right.

Nextel Partners Inc.   www.nextelpartners.com
Sprint Nextel Corp.   www.sprint.com

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