Sprint - Nextel 2007 Annual Report Download - page 114

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SPRINT NEXTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Our ability to borrow additional amounts under the credit facility may be restricted by provisions included
in some of our public notes that limit the incurrence of additional indebtedness in certain circumstances. The
availability of borrowings under this facility also is subject to the satisfaction or waiver of specified borrowing
conditions. As of December 31, 2007, we have satisfied the conditions under this facility.
In 2006, we retired our $3.2 billion term loan with a portion of the proceeds received in connection with the
spin-off of Embarq. We also repaid and terminated a credit facility that we assumed as part of the Nextel Partners
acquisition, which had a $500 million outstanding term loan and provided for a $100 million revolving credit
facility, which had no outstanding borrowings against it.
Commercial Paper
In April 2006, we commenced a commercial paper program, which has reduced our borrowing costs by
allowing us to issue short-term debt at lower rates than those available under our $6.0 billion revolving credit
facility. The $2.0 billion program is backed by our revolving credit facility and reduces the amount we can
borrow under the facility to the extent of the commercial paper outstanding. As of December 31, 2007, we had
$379 million of commercial paper outstanding, included in the current maturities of long-term debt, with a
weighted average interest rate of 5.765% and a remaining weighted average maturity of 15 days.
Capital Lease Obligations and Other
As of December 31, 2007, we had $106 million in capital lease and other obligations, primarily for the use of
communication switches.
Future Maturities of Long-Term Debt and Capital Lease Obligations
For the years subsequent to December 31, 2007, scheduled annual principal payments of long-term debt,
including our bank credit facility and capital lease obligations outstanding as of December 31, 2007, are as
follows:
(in millions)
2008 ............................................................ $ 1,661
2009 ............................................................ 617
2010 ............................................................ 1,373
2011 ............................................................ 1,667
2012 ............................................................ 3,254
Thereafter ....................................................... 13,320
21,892
Add deferred premiums/discounts and fair value hedge adjustments ......... 238
$22,130
Seventh Series Redeemable Preferred Shares
On March 31, 2006, we redeemed for cash all of our outstanding Seventh series preferred shares at the
stated value of $1,000 per share for an aggregate face amount of $247 million, which approximated the carrying
value at the time of redemption. Dividends of $6.73 per share were paid quarterly through March 31, 2006.
F-29