Company Website:
http://www.sprint.com
OVERLAND PARK, Kan. -- (Business Wire)
Sprint Corporation (NYSE: S) announced today that it has signed three
new vendor financing facilities totaling $1.8 billion to purchase 2.5
GHz network equipment and related services from key suppliers. Sprint
also amended and expanded by $300 million its credit relationship with
Export Development Canada (EDC) as well as amended the terms of its
existing secured equipment credit facility.
“These deals provide Sprint with greater flexibility and liquidity
options as we focus on growing the business and investing in our
network,” said Joe Euteneuer, Sprint’s Chief Financial Officer.
The three new vendor financing agreements are:
-
A secured facility for up to $800 million from Nokia Networks maturing
in June 2021. It is backed by credit insurance provided by Finnvera
plc, the export credit agency of Finland.
-
A secured facility for up to $750 million from Samsung maturing in
Dec. 2022. It is backed by credit insurance provided by the Korea
Trade Insurance Corporation (Ksure), the export credit agency of Korea.
-
A secured facility for up to $250 million from ALU maturing in Dec.
2021. It is backed by credit insurance provided by Delcredere |
Ducroire (D/D), the export credit agency of Belgium.
Each of these three new facilities is guaranteed by both Sprint
Corporation and Sprint Communications, Inc., and the respective
equipment purchases will serve as collateral. Interest will be variable,
consisting of 6-month LIBOR plus a spread, depending on the particular
facility.
In addition, ALU was also instrumental in arranging a $300 million
incremental facility from EDC, maturing in Dec. 2019. This facility was
extended through an amendment of the existing EDC facility, which was
also amended to align its financial covenants with Sprint’s revolving
credit facility and add Sprint Corporation as a guarantor. The total
outstanding borrowings from EDC now amount to $800 million.
Sprint also amended the terms of the secured equipment credit facility
that it used to finance $1 billion in purchases of network equipment and
related services from Ericsson. The amendment of this facility aligned
its financial covenants with those of Sprint’s revolving credit
facility, and added Sprint Corporation as a guarantor. As of Sept. 30,
2014, this facility had an outstanding principal balance of $635 million
after accounting for prior repayments, which will continue semi-annually
until March 2017.
Finally, last month the Federal Communications Commission (FCC) approved
Sprint’s request to reduce the Letter of Credit (LOC) for 800 MHz
incumbent reconfiguration costs by an additional $22.6 million. This
lowered the LOC to approximately $434 million and follows the FCC’s
approval of a reduction from $850 million to $457 million earlier in
2014.
As of Sept. 30 2014, Sprint’s total cash, cash equivalents, and
short-term investments were $5.3 billion and its total liquidity
position was $8.8 billion.
About Sprint:
Sprint (NYSE: S) is a communications services company that creates more
and better ways to connect its customers to the things they care about
most. Sprint served 55 million customers as of September 30, 2014 and is
widely recognized for developing, engineering and deploying innovative
technologies, including the first wireless 4G service from a national
carrier in the United States; leading no-contract brands including
Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant
national and international push-to-talk capabilities; and a global Tier
1 Internet backbone. Sprint has been named to the Dow Jones
Sustainability Index (DJSI) North America for the last four years. You
can learn more and visit Sprint at www.sprint.com
or www.facebook.com/sprint
and www.twitter.com/sprint.
Contacts:
Sprint Corporation
Media Contact:
Scott Sloat,
240-855-0164
scott.sloat@sprint.com
or
Investor
Contact:
Jud Henry, 800-259-3755
investor.relations@sprint.com
Source: Sprint Corporation
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