Nextlink Offerings Raise $600 Million

Nextlink Communications Inc. raised almost $600 million Friday in separate offerings of stock and bonds.

The Bellevue-based company, a provider of local and long-distance telephone services as well as other telecommunications, said the money will be used to finance the expansion of existing networks and services, acquire additional networks, and fund operating losses and working capital.

Greg Green, president of Nextlink Washington, said some of the money is already at work in Spokane, where crews are extending a downtown network up the South Hill and over to the county Courthouse.

Eventually, he said, Nextlink would like to linkup with Coeur d’Alene, making local calls between the Lake City and Spokane possible.

Nextlink, founded by cellular telephone pioneer Craig McCaw, has networks in seven states.

Of the 15,200,000 shares sold Friday, 12,000,000 were sold by the company and 3,200,000 by McCaw. The stock was priced at $17 per share and generated net proceeds to the company totaling approximately $191 million.

The offering ran concurrently with the sale of $400 million of 9.625 percent senior notes, issued at par, due 2007 which generated net proceeds to the company of approximately $388 million.

The Nextlink shares will trade on NASDAQ under the symbol NXLK.

, DataTimes