EXHIBIT 20.1
NEWS RELEASE
Nextel Communications, Inc.
1505 Farm Credit Drive
McLean, VA 22102
703-394-3000
[LOGO] Media:
Ben Banta (703) 394 - 3573
For Immediate Release Investors/Analysts:
Paul Blalock (703) 394 - 3500
NEXTEL ANNOUNCES EARLY COMMITMENT OF MCCAW FAMILY
TO EXERCISE OPTIONS, AN EXPANDED AGREEMENT FOR ADDITIONAL FINANCING
AND RECORD FIRST QUARTER SUBSCRIBER GAINS
-- Commitment to Early Exercise of July 1997
Options Worth $232.5 Million --
-- McCaw Family Pays $25 Million for New
July 1998 Options Worth $420 Million --
-- Record First Quarter Digital Adds of 122,600
on Increased Revenue --
McLEAN, VA., April 14, 1997 -- Nextel Communications, Inc.(NASDAQ: NXTL) today
announced an early McCaw Family commitment to exercise its option to acquire 15
million shares of Nextel common stock on July 28, 1997, at an exercise price of
$15.50 per share, for a total of $232.5 million. The McCaw Family also
purchased, for a $25 million total purchase price, options to acquire up to 25
million shares expiring in July 1998 for a total exercise price of $420 million
in new equity, further increasing the potential McCaw Family strategic
investment in Nextel to approximately $1.6 billion.
Nextel also announced that it added a record 122,600 digital subscribers during
the first quarter of 1997. As of March 31, 1997, Nextel has approximately
422,900 digital subscriber units in service in hundreds of cities across the
U.S. The increase is a 70 percent jump over last year's fourth quarter results
when 72,300 digital subscriber units were added. The company also announced an
increase in average monthly revenue per digital unit from a fourth quarter 1996
level of $56 to a first quarter 1997 level of $59.
"Strong subscriber growth and the early option exercise and enhanced financing
from the McCaw Family are significant votes of confidence and confirm that we're
on target with our business plan," said Dan Akerson, chairman and chief
executive officer of Nextel Communications. "We continue to aggressively build
out our network and now have rolled out an equally aggressive advertising and
marketing program to fuel our growth."
"Under Dan Akerson's able leadership, Nextel is finally on the road to
fulfilling the promise of high quality wireless communications for work groups,"
commented Craig O. McCaw, Nextel's leading shareholder. "We appreciate the
incredible effort Motorola has made in lifting the iDEN technology to a global
standard of quality."
The new McCaw Family July 1998 options to acquire 25 million shares are divided
into an option to acquire 15 million Nextel shares at an exercise price of $16
per share and 10 million shares at an exercise price of $18 per share. These
options expire on July 28, 1998.
In a related transaction, the McCaw Family has agreed to provide Nextel with $50
million in senior secured financing in order to permit Nextel to meet certain
requirements of its current financing commitment with Motorola. In addition,
Nextel has agreed, concurrent with the firm commitment of the McCaw Family to
exercise its options for 15 million shares at $15.50 per share, to issue a price
protection instrument to the McCaw Family that will be exercisable at no cost
for up to 1.6 million shares of Nextel common stock. The actual number of shares
to potentially be issued will vary based upon the average market price of Nextel
common stock for the 20 days prior to the July 28 option exercise. No additional
shares will be issued if the average is above the $15.50 exercise price and the
maximum number of shares will be issued if the average is $14.00 or less. Nextel
has also agreed that the McCaw Family may grant, to a purchaser of at least 10
million of the shares issuable on exercise of the new options, a right to
designate one nominee for election to Nextel's board.
The transactions are subject to negotiation of definitive agreements and to
receipt of certain approvals, including Nextel's receipt of consents to certain
amendments of its public indenture that would enhance Nextel's financing
flexibility.
Nextel Communications, based in McLean, VA, is the nation's leading provider of
fully integrated wireless communications and has built the largest guaranteed
all-digital wireless network in the United States. To learn more about Nextel
and our services, visit our website at http://www.nextel.com.
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