Sprint - Nextel 2012 Annual Report Download - page 58

Table of Contents
Long - Term Debt and Scheduled Maturities
The following debt issuances and redemptions occurred during 2012:
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(1) In May 2012, certain of our subsidiaries entered into a $1.0 billion secured equipment credit facility that expires in March 2017 to finance equipment-related purchases
from Ericsson for Network Vision. The facility is secured by a lien on the equipment purchased and is fully and unconditionally guaranteed by Sprint Nextel Corporation, the
parent corporation. The facility is equally divided into two consecutive tranches of $500 million, with drawdown availability contingent upon our equipment-related
purchases from Ericsson, up to the maximum of each tranche, ending on May 31, 2013 and May 31, 2014, for the first and second tranche, respectively. Repayments of
outstanding amounts on the secured equipment credit facility cannot be re-drawn. The cost of funds under this facility includes a fixed interest rate of 2.03%, and export
credit agency premiums and other fees that, in total, equate to an expected effective interest rate of approximately 6% based on assumptions such as timing and amounts of
drawdowns. As of December 31, 2012, the Company had borrowing capacity of $204 million under the first tranche of our secured equipment credit facility.
The following graph depicts our future principal maturities of debt as of December 31, 2012:
* This table includes the $3.1 billion 1% convertible bond that is convertible into Sprint common stock upon consummation of the SoftBank merger, which will otherwise
mature in 2019, and excludes (i) our prior revolving bank credit facility, which was due to expire in October 2013 and had no outstanding balance, (ii) our new revolving
credit facility, which will expire in 2018, (iii) $925 million in letters of credit outstanding under the prior revolving bank credit facility, (iv) any undrawn, available credit
under our secured equipment credit facility, which will mature in 2017, and (v) all capital leases and other financing obligations.
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Date
Interest rate
Maturity
Amount
(in millions)
Issuances:
Senior notes
March 2012
9.125%
2017
$
1,000
Guaranteed notes
March 2012
7.000%
2020
1,000
Secured equipment credit facility(1)
May 2012
2.030%
2017
296
Senior notes
August 2012
7.000%
2020
1,500
Convertible bond
October 2012
1.000%
2019
3,100
Senior notes
November 2012
6.000%
2022
2,280
Total issuances
9,176
Redemptions:
Serial redeemable senior notes
June 2012
6.875%
2013
$
1,000
Serial redeemable senior notes
August 2012
6.875%
2013
473
Serial redeemable senior notes
August 2012
7.375%
2015
1,027
Serial redeemable senior notes
November 2012
7.375%
2015
1,110
Serial redeemable senior notes
November 2012
5.950%
2014
1,170
Total redemptions
4,780