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Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
F-53
Note 17. Guarantor Financial Information
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 transaction with
registration rights. On December 12, 2013, Sprint Corporation issued $2.5 billion aggregate principal amount of 7.125%
notes due 2024 in a private placement transaction with registration rights. Each of these issuances is fully and unconditionally
guaranteed by Sprint Communications, Inc. (Subsidiary Guarantor), which is a 100 percent owned subsidiary of Sprint
Corporation (Parent/Issuer). In connection with the foregoing, the registration rights agreements with respect to the notes
required the Company and Sprint Communications, Inc. to use their reasonable best efforts to cause an offer to exchange the
notes for a new issue of substantially identical exchange notes registered under the Securities Act of 1933. Accordingly, in
November 2014, we completed an exchange offer for these notes in compliance with our registration obligations. We did not
receive any proceeds from this exchange offer. In addition, on February 24, 2015, Sprint Corporation issued $1.5 billion
aggregate principal amount of 7.625% notes due 2025, which are fully and unconditionally guaranteed by Sprint
Communications, Inc.
Under the Subsidiary Guarantor's revolving bank credit facility and other finance agreements, the Subsidiary
Guarantor is currently restricted from paying cash dividends to the Parent/Issuer or any Non-Guarantor Subsidiary because
the ratio of total indebtedness to adjusted EBITDA (each as defined in the applicable agreement) exceeds 2.5 to 1.0.
In May 2014, certain wholly-owned subsidiaries of Sprint entered into a Receivables Facility arrangement to sell
certain accounts receivable on a revolving basis, subject to a maximum funding limit of $1.3 billion. In connection with this
arrangement, Sprint formed certain wholly-owned subsidiaries, which are bankruptcy remote SPEs and are included in the
Non-Guarantor Subsidiaries condensed consolidated financial information (see Note 3. Significant Transactions).
The guarantor financial information distinguishes between the Predecessor period relating to Sprint
Communications for periods prior to the SoftBank Merger and the Successor period relating to Sprint Corporation (formerly
Starburst II), for periods subsequent to the incorporation of Starburst II on October 5, 2012. Additionally, because the Parent/
Issuer column represents the activities of Sprint Corporation (formerly Starburst II), no Parent/Issuer financial information
exists for the Predecessor periods, which are prior to the SoftBank Merger. We have accounted for investments in subsidiaries
using the equity method. Presented below is the condensed consolidating financial information as of the periods presented in
the consolidated financial statements.