Sprint - Nextel 2006 Annual Report Download - page 113

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Note 9. Long-Term Debt, Capital Lease Obligations, and Seventh Series Redeemable Preferred Shares
December 31, 2005
Acquired Debt
(1)
and
Borrowings
Retirements and
Repayments of
Principal
and Other December 31, 2006
(in millions)
Senior notes due 2006 to 2032
1.5% to 13.625%, including fair value
hedge adjustments of $(17) and $(25),
deferred premiums of $337 and $390
and unamortized discounts of $70 and
$35 ........................... $21,639 $4,291 $ (4,396) $21,534
Bank credit facilities
5.338% and 6.85% .................. 3,215 500 (3,715) —
Commercial paper 4.87% to 5.53%...... — 4,618 (4,104) 514
Capital lease obligations and other
4.11% to 11.174% .................. 160 51 (105) 106
25,014 $9,460 $(12,320) 22,154
Current maturities of long-term debt .... (5,045) (1,143)
Long-term debt and capital lease
obligations ....................... $19,969 $21,011
(1) Includes debt acquired in connection with the PCS Affiliate and Nextel Partners acquisitions as discussed
in note 3.
Sprint Nextel, the parent corporation, has about $2.7 billion of debt outstanding, including commercial paper.
In addition, about $19.2 billion of our long-term debt has been issued by wholly-owned subsidiaries and has
been fully and unconditionally guaranteed by Sprint Nextel. The indentures and financing arrangements of
certain of our subsidiaries contain provisions that limit cash dividend payments on subsidiary common stock
held by the parent corporation. The transfer of cash in the form of advances from the subsidiaries to the parent
corporation is generally not restricted.
As of December 31, 2006, about $621 million of our outstanding debt, comprised of certain secured notes,
capital lease obligations and mortgages, is secured by $1.9 billion of gross property, plant and equipment and
other assets.
Senior Notes
As of December 31, 2006, we have $21.5 billion of convertible and senior serial redeemable notes. Cash
interest on these notes is payable semiannually in arrears. Most of our notes are redeemable at our discretion.
We may choose to redeem some or all of these notes at the then applicable redemption price, plus accrued and
unpaid interest. The $607 million in aggregate principal amount of our 5.25% notes due 2010 are convertible
at any time prior to redemption, repurchase or maturity at the option of the holders into shares of our Series 1
common stock at an effective conversion price of $53.65 per share, plus $11.37 in cash for each $1,000
principal amount. As of December 31, 2006, senior notes also included $124 million of debt associated with a
consolidated variable interest entity.
In November 2006, we completed the sale of $2.0 billion in principal amount of 6.0% senior serial redeemable
notes due 2016. Cash interest is payable semiannually in arrears on June 1 and December 1 commencing
June 1, 2007, at an annual rate of 6.0%. We may choose to redeem some or all of these notes at any time and
F-36
SPRINT NEXTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)