Verizon Wireless (NYSE: VZ) has every intention of closing the deal for rural carrier Alltel (NYSE: AT) and won’t let difficult credit-market conditions deter it. Verizon Chairman and Chief Executive Ivan Seidenberg told the WSJ.com that the challenge for the number two carrier would be to arrange financing that “isn’t too costly,” though he expects interest rates to come down. In June, Verizon said it would buy Alltel in a deal valued at $28.1 billion, which included taking on $22.2 billion in debt. Verizon had hoped to issue new debt to repay it, but now has higher interest rates than expected to deal with.

SEE ALSO: Will Verizon Ditch Alltel Deal In Face Of Economic Crisis?

But Seidenberg was firm that the higher-than-anticipated borrowing costs won’t derail the deal. He said, “This is an asset that’s going to be valuable to us for 20 or 30 years.” But does Verizon even have a choice if it wanted to get out of the deal or try to get a better price? Seidenberg declined to comment on renegotiating, but according to WSJ sources “it would be difficult” under the “strict contract” for the carrier to alter the deal, or to get out of it completely. Still, as Seidenberg points out, “Everyone has an incentive to make this work.” That includes Alltel’s PE owners TPG Capital and GS Capital Partners, who stand to make a profit of around $1.3 billion on the completed deal, as well as the banks behind Alltel’s buyout—including Barclays, Citigroup, Royal Bank of Scotland. and Goldman—who would be able “to cut potential losses”.

Matt adds: Verizon faces bigger issues than cold feet in worsening economic times. The FCC is being lobbed with protests from public interest groups who oppose the merger, saying it will diminish competition in an already tightening industry, Washington Post reports. The FCC vote on the merger is being rushed under pressure from the carriers to complete the deal by year’s end, an anonymous source told the Washington Post. Rural carriers will be hit particularly hit hard if Verizon eventually cancels Alltel’s current roaming agreements.