Sprint - Nextel 2014 Annual Report Download - page 114

Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
F-31
EDC agreement
The unsecured EDC agreement was amended in December 2014 to modify the Leverage Ratio to provide for
terms similar to those of the revolving bank credit facility, as was amended in October 2014 mentioned above, as well as to
add Sprint Corporation as guarantor. As part of the amendment to the EDC agreement, we increased our borrowing capacity
by an additional $300 million due in 2019. As of March 31, 2015, the EDC agreement was fully drawn totaling $800 million.
Under the terms of the EDC agreement, repayments of outstanding amounts cannot be re-drawn.
Secured equipment credit facilities
Eksportkreditnamnden (EKN)
The EKN secured equipment credit facility was amended in December 2014 to modify the terms and conditions as
it relates to the Leverage Ratio to provide for terms similar to those of the revolving bank credit facility as was amended in
October 2014 mentioned above, as well as to add Sprint Corporation as a guarantor. As of March 31, 2015, both tranches of
the EKN secured equipment credit facility totaling $1.0 billion were fully drawn. We made regularly scheduled principal
repayments totaling $254 million during the year ended March 31, 2015 and the balance outstanding at March 31, 2015 was
$508 million. Under the terms of the EKN secured equipment credit facility, repayments of outstanding amounts cannot be
re-drawn.
Finnvera plc (Finnvera)
In December 2014, we and certain of our subsidiaries entered into a secured equipment credit facility insured by
Finnvera, the Finnish export credit agency, with the ability to borrow up to $800 million, to finance network equipment-
related purchases from Nokia Solutions and Networks US LLC, USA. The facility is divided into three consecutive tranches
of varying size, with borrowings available through October 2017, contingent upon the amount of equipment-related
purchases made by Sprint. Interest and fully-amortizing principal payments are due semi-annually, by tranche, beginning in
March 2015 until June 2021. As of March 31, 2015, we had drawn $72 million on the facility. We made principal repayments
totaling $28 million during the year ended March 31, 2015 and the balance outstanding at March 31, 2015 was $44 million.
K-sure
In December 2014, we and certain of our subsidiaries entered into a secured equipment credit facility insured by
K-sure, the Korean export credit agency, with the ability to borrow up to $750 million, to finance network equipment-related
purchases from Samsung Telecommunications America, LLC. The facility is divided into three consecutive tranches of
varying size, and draws became available in January 2015 and will be available until May 2018 or until fully drawn,
contingent upon the amount of equipment-related purchases by Sprint. Interest and fully-amortizing principal payments are
due semi-annually by tranche beginning in June 2015 until December 2022. As of March 31, 2015, we had drawn $58 million
on the facility.
Delcredere | Ducroire (D/D)
In December 2014, we and certain of our subsidiaries entered into a secured equipment credit facility insured by
D/D, the Belgian export credit agency, with the ability to borrow up to $250 million, to finance network equipment-related
purchases from Alcatel-Lucent USA Inc. The facility became available to draw in early 2015 and will be available until
December 2016. Interest and fully-amortizing principal payments are due semi-annually beginning in June 2015 until
December 2021. As of March 31, 2015, we had not made any draws on the facility.
Borrowings under the EKN, Finnvera, K-sure and D/D secured equipment credit facilities are each secured by
liens on the respective equipment purchased pursuant to each of the facilities. Each of these facilities is fully and
unconditionally guaranteed by both Sprint Communications, Inc. and Sprint Corporation. The covenants under each of the
four secured equipment credit facilities are similar to one another and to the covenants of our revolving bank credit facility
and EDC agreement.
Financing, Capital Lease and Other Obligations
We have approximately 3,000 cell sites that we sold and subsequently leased back. Terms extend through 2021,
with renewal options for an additional 20 years. These cell sites continue to be reported as part of our property, plant and
equipment due to our continued involvement with the property sold and the transaction is accounted for as a financing. Our
capital lease and other obligations are primarily for the use of wireless network equipment.