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.