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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 23, 1998
NEXTLINK Communications, Inc.
(Exact name of registrant as specific in its charter)
Washington
(State or other jurisdiction of incorporation)
333-4603 91-1738221
(Commission File Number) (IRS Employer Identification No.)
155 108th Avenue NE, Bellevue, WA 98004
(Address of principal executive offices, including
zip code)
(425) 519-8900
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
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Item 5. Other Events.
On February 23, 1998, Nextlink Communications, Inc. (the "Registrant")
entered into a Fiber Lease and Innerduct Use Agreement (the "Fiber Agreement")
with Metromedia Fiber Network, Inc. ("MFN"). Under the Fiber Agreement, the
Registrant will pay a total of $92 million for a lease of the exclusive rights
to use multiple fibers and innerducts along various MFN routes for a period of
twenty years with two ten year renewals.
On February 24, 1998, the Registrant and MFN issued a joint press
release announcing the signing of the Fiber Agreement; such press release is
included herewith as Exhibit 99.1 and is incorporated by reference herein.
Item 7. Financial Statements and Exhibits.
(c) Exhibits:
99.1 Press Release issued by the Registrant and MFN, dated
February 24, 1998.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NEXTLINK COMMUNICATIONS, INC.
By: /s/ R. Bruce Easter, Jr.
Name: R. Bruce Easter, Jr.
Title: Vice President
Date: March 11, 1998
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EXHIBIT 99.1
For Immediate Release For more information contact:
Todd Wolfenbarger
Vice President Corporate
Communications
425.519.3946 or 206.399.6770
Metromedia Fiber Network and NEXTLINK sign $92 million Network
Lease Agreement
NEW YORK--February 24, 1998--Metromedia Fiber Network (NASDAQ: MFNX) today
announced the signing of a $92 million agreement giving NEXTLINK Communications,
Inc. (NASDAQ: NXLK) exclusive rights to multiple fibers and innerducts along
various Metromedia Fiber Network routes for a period of twenty years with two
ten year renewals. Of the $92 million, $11,750,000 shall be paid upfront to MFN
and $80,250,000 shall be placed in escrow to be released as delivery of the
fibers and innerducts are completed during 1998 and 1999.
This contract represents the second major agreement between the two companies.
In June 1997 the companies signed an $11 million agreement giving NEXTLINK the
exclusive rights of use to multiple fibers along Metromedia Fiber Network's New
York Metropolitan Area network. Today's announcement furthers the two companies
relationship by adding metropolitan New York/New Jersey routes, intra-city
routes in metropolitan Philadelphia and Washington, D.C. and an inter-city link
between New York and Washington D.C.
"NEXTLINK was one of our first CLEC customers, and we are excited that they have
decided to expand upon this relationship," said Howard Finkelstein, President
Metromedia Fiber Network. "By constructing our network in vital Tier 1 cities,
Metromedia Fiber Network is enabling carrier such as NEXTLINK to expand their
own facilities and compete in the most lucrative telecommunications markets."
Under the new agreement, NEXTLINK will have rights of use for a network covering
more that 650 route miles. This expansive network will stretch from Manhattan to
White Plains, New York to Greenwich and Stamford in Connecticut, through Newark
and Northern, New Jersey. The network will also extend south from New York
through Philadelphia, Wilmington, Baltimore, and the Washington, D.C. area. To
facilitate network deployment, abundant splice points will be placed every two
miles through the metropolitan regions. This network will provide increased
access to many central and tandem offices along these routes, giving NEXTLINK a
strong competitive position in each of these markets.
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"Expanding into additional tier 1 markets is a top business priority for
NEXTLINK in 1998" said George Tronsrue, NEXTLINK Chief Operating Officer. "This
agreement allows us to quickly and cost-effectively expand into new markets to
provide high quality NEXTLINK service to a significant number of new customers."
Metromedia Fiber Network provides technologically advanced, high-bandwidth,
private, fiber optic communications infrastructure within major U.S. local
markets. The company provides its infrastructure to communications carriers
competing in the local, long distance, wireless, and Internet markets as well as
corporate/government customers requiring secure communications networks for the
transmission of large amounts of voice, data, and video. Headquartered in New
York City, MFN currently operates a fiber optic metropolitan area network in New
York and is developing local fiber optic infrastructure along strategic routes
in Chicago, Philadelphia and Washington D.C. and an inter-city link between New
York and Washington D.C. The company has established a joint venture with Racal
Telecom of the United Kingdom and will begin providing service between the
United States and the United Kingdom in 1998. For more information about
Metromedia Fiber Network, please visit the company's Web site at www.mmfn.com.
NEXTLINK Communications, Inc. was founded by Craig McCaw in 1994 to provide
local, long distance and enhanced communications services to commercial
customers. Headquartered in Bellevue, Wash., NEXTLINK currently operates 16
facilities-based networks providing switched local and long distance services in
26 markets in eight states.
This news release contains some matters which are not historical facts but are
"forward-looking statements". The reader is cautioned that these forward-looking
statements, such as the plans to build and acquire networks in new areas,
anticipation of revenues from designated markets, and statements regarding the
development of both the companies businesses, and other statements contained
herein regarding matters that are not historical facts, are only predictions. No
assurance can be given that the future results will be achieved; actual events
or results may differ materially as a result of risks facing both companies.
Such risks include, but are not limited to, successfully marketing services to
current and new customers, access markets, designing and constructing fiber
optic networks, installing cable and facilities, including switching
electronics, and obtain right-of-way, building accessing rights and any required
governmental authorizations, franchises and permits, all in a timely manner, at
reasonable costs and on satisfactory terms and conditions, as well as
regulatory, legislative and judicial developments that could cause actual
results to differ materially from the future results indicated; expressed or
implied, in such forward-looking statements.
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