Sprint - Nextel 2012 Annual Report Download - page 142

Table of Contents
SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of
December 31, 2012 , Sprint Nextel Corporation, the parent corporation, had $16.9 billion in principal amount of debt outstanding,
including amounts drawn under the credit facilities. In addition, as of
December 31, 2012 , $7.0 billion in principal amount of our long - term debt issued
by 100% owned subsidiaries was fully and unconditionally guaranteed by the parent. The indentures and financing arrangements governing certain
subsidiaries' debt contain provisions that limit cash dividend payments on subsidiary common stock. The transfer of cash in the form of advances
from the subsidiaries to the parent corporation generally is not restricted.
As of
December 31, 2012 , about $1.5 billion of our outstanding debt, comprised of certain notes, financing and capital lease obligations and
mortgages, is secured by
$995 million of property, plant and equipment and other assets, net (gross book value of $1.4 billion ). Cash interest payments,
net of amounts capitalized of
$278 million , $413 million , and $13 million , totaled $1.4 billion , $1.0 billion , and $1.5 billion during each of the years ended
December 31, 2012 , 2011 and 2010 , respectively. Our weighted average effective interest rate related to our notes and credit facilities was 7.5% in 2012
and
7.0% in 2011.
Notes
Notes consist of senior notes, serial redeemable senior notes, guaranteed notes, and convertible bonds, all of which are unsecured, as well
as secured notes of iPCS, Inc. (iPCS), which are secured solely with the underlying assets of iPCS. Cash interest on all of the notes is generally payable
semi - annually in arrears. As of December 31,
F - 21
Note 8.
Long - Term Debt, Financing and Capital Lease Obligations
Interest
Rates
Maturities
December 31,
2012
December 31,
2011
(in millions)
Notes
Senior notes
Sprint Nextel Corporation
6.00
-
11.50%
2016
-
2022
$
9,280
$
4,500
Sprint Capital Corporation
6.88
-
8.75%
2019
-
2032
6,204
6,204
Serial redeemable senior notes
Nextel Communications, Inc.
5.95
-
7.38%
2013
-
2015
—
4,780
Guaranteed notes
Sprint Nextel Corporation
7.00
-
9.00%
2018
-
2020
4,000
3,000
Secured notes
iPCS, Inc.
2.44
-
3.56%
2013
-
2014
481
481
Convertible bonds
Sprint Nextel Corporation
1.00%
2019
3,100
—
Credit facilities
Bank credit facility
4.31%
2013
—
—
Export Development Canada
5.39%
2015
500
500
Secured equipment credit facility
2.03%
2017
296
—
Financing obligation
9.50%
2030
698
698
Capital lease obligations and other
4.11
-
15.49%
2014
-
2022
74
71
Net discount from beneficial conversion feature on convertible bond
(247
)
—
Net (discounts) premiums
(45
)
40
24,341
20,274
Less current portion
(379
)
(8
)
Long - term debt, financing and capital lease obligations
$
23,962
$
20,266