Sprint - Nextel 2013 Annual Report Download - page 147

Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of
December 31, 2013 , about $1.9 billion of our outstanding debt, comprised of certain notes, financing and capital lease obligations and
mortgages, is secured by
$15.7 billion of property, plant and equipment and other assets, net and gross. Cash interest payments, net of amounts capitalized of
$30 million , $278 million , and $413 million , totaled $1.0 billion , $1.4 billion , and $1.0 billion during each of the years ended December 31, 2013 (Successor), 2012
(Predecessor), and
2011 (Predecessor), respectively. Cash interest payments, net of amounts capitalized of $29 million , totaled $814 million during the
Predecessor 191
- day period ended July 10, 2013, respectively. Our weighted average effective interest rate related to our notes and credit facilities was 6.4% for
the Successor year ended
December 31, 2013 and 8.9% and 7.5% for the Predecessor 191 - day period ended July 10, 2013 and year ended December 31, 2012 .
Notes As of
December 31, 2013 , our outstanding notes consist of Senior notes, Guaranteed notes, and exchangeable notes of Clearwire Communications
LLC, all of which are unsecured, as well as Secured notes of iPCS and Clearwire Communications LLC, which are secured solely by the respective underlying
assets of iPCS and Clearwire Communications LLC. Cash interest on all of the notes is generally payable semi
- annually in arrears. As of December 31, 2013 ,
approximately $28.8 billion aggregate principal amount of the notes were redeemable at the Company's discretion at the then - applicable redemption prices plus
accrued interest.
As of
December 31, 2013 , approximately $20.1 billion aggregate principal amount of our Senior notes and Guaranteed notes provide holders with the
right to require us to repurchase the notes if a change of control triggering event (as defined in the applicable indentures and supplemental indentures) occurs.
As of
December 31, 2013 , approximately $300 million aggregate principal amount of Clearwire Communications LLC notes and approximately $181 million
aggregate principal amount of iPCS Secured notes provide holders with the right to require us to repurchase the notes if a change of control occurs. If we are
required to make such a change of control offer, we will offer a cash payment equal to
101% of the aggregate principal amount of notes repurchased plus
accrued and unpaid interest.
Upon the close of the Clearwire Acquisition, the Clearwire Communications, LLC
8.25% Exchangeable Notes due 2040 became exchangeable at any
time, at the holder
’ s option, for a fixed amount of cash equal to $706.21 for each $1,000 principal amount of notes surrendered. As a result, $444 million , which is
the total cash consideration payable upon an exchange of all
$629 million principal amount of notes outstanding, is now classified as a current debt
obligation. The remaining carrying value of these notes is classified as a long
- term debt obligation.
Debt Issuances
On September 11, 2013, Sprint Corporation issued
$2.25 billion aggregate principal amount of 7.250% notes due 2021 and $4.25 billion aggregate
principal amount of
7.875% notes due 2023 in a private placement (144A) transaction with registration rights. Interest on the notes is payable semi - annually on
March 15 and September 15. The notes are guaranteed by Sprint Communications, Inc.
On December 12, 2013, Sprint Corporation issued
$2.5 billion aggregate principal amount of 7.125% notes due 2024 in a private placement (144A)
transaction with registration rights. Interest on the notes is payable semi
- annually on June 15 and December 15. The notes are guaranteed by Sprint
Communications, Inc.
Debt Retirements
On May 1, 2013, the Company paid $300 million in principal amount upon maturity of its outstanding iPCS, Inc. Secured Floating Rate Notes due
2013.
From September 11, 2013 through December 1, 2013, approximately
$2.8 billion in principal amount of Clearwire Communications LLC's 12% Senior
secured notes due 2015 were retired. From October 30, 2013 to December 1, 2013,
$500 million in principal amount of Clearwire Communications LLC's 12%
second
- priority secured notes due 2017 were retired. In addition, we paid approximately $180 million in call premiums associated with these retirements.
F - 29