OVERLAND PARK, Kan., Aug 07, 2008 (BUSINESS WIRE) -- Sprint Nextel Corporation (NYSE:S) today announced that it is no longer pursuing the private placement of cumulative perpetual convertible preferred stock. The company decided to cancel the offering because the terms being offered were not economically attractive due to unfavorable market conditions. The company remains committed to paying down debt and strengthening its balance sheet.
The company reiterated its forecast, announced yesterday in association with second quarter results: Sprint Nextel expects Free Cash Flow to improve substantially in the second half of 2008. Furthermore, the company expects to remain in compliance with its debt covenants for the foreseeable future and expects to reduce gross debt by at least $1 billion by the end of the third quarter.
Safe Harbor Statement
This news release includes "forward-looking statements" within the meaning of the securities laws. The statements in this news release regarding the business outlook and performance, as well as other statements that are not historical facts, are forward-looking statements. The words "forecast," "intend," "expect," "believe," and similar expressions are intended to identify forward-looking statements. Forward-looking statements are estimates and projections reflecting management’s judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, customer and network usage, customer growth and retention, pricing, development, deployment and operating costs, availability of devices, the timing of various events and the economic environment.
Sprint Nextel believes these forward-looking statements are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current expectations and speak only as of the date of this release. Sprint Nextel is not obligated to publicly release any revisions to forward-looking statements to reflect events after the date of this release. Sprint Nextel provides a detailed discussion of risk factors in periodic SEC filings, including its annual report on Form 10-K for the year ended December 31, 2007.
ABOUT SPRINT NEXTEL
Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel is widely recognized for developing, engineering and deploying innovative technologies, including two wireless networks serving nearly 52 million customers at the end of the push-to-talk capabilities; and a global Tier 1 Internet backbone. For more information, visit www.sprint.com.
SOURCE: Sprint Nextel Corporation
Sprint Nextel Corporation Media Relations James Fisher, 703-433-8677 firstname.lastname@example.org or Investor Relations Steve Virostek, 800-259-3755 Investor.email@example.com