Sprint - Nextel 2014 Annual Report Download - page 58

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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. In April 2015, we drew an additional $102 million on this credit facility.
Delcredere | Ducroire secured equipment credit facility
In December 2014, we and certain of our subsidiaries entered into a secured equipment credit facility insured by
Delcredere | Ducroire (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 drawn on the facility.
Borrowings under the EKN, Finnvera, K-sure and D/D secured equipment credit facilities are 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 our secured equipment
credit facilities are similar to one another and to the covenants of our revolving bank credit facility and EDC agreement.
As of March 31, 2015, our Leverage Ratio, as defined by the revolving bank credit facility, EDC Agreement and
all other equipment credit facilities was 5.5 to 1.0. Because our Leverage Ratio exceeded 2.5 to 1.0 at period end, we were
restricted from paying cash dividends.
The following graph depicts our future fiscal year principal maturities of debt as of March 31, 2015:
* This table excludes (i) our unsecured revolving bank credit facility, which will expire in 2018 and has no outstanding balance, (ii) $470 million in letters of
credit outstanding under the unsecured revolving bank credit facility, and (iii) all capital leases and other financing obligations.
Liquidity and Capital Resources
As of March 31, 2015, our liquidity, including cash, cash equivalents, short-term investments and available
borrowing capacity under our revolving bank credit facility and availability under the Receivables Facility was $7.5 billion.
Our cash, cash equivalents and short-term investments totaled $4.2 billion as of March 31, 2015 compared to $6.2 billion as
of March 31, 2014. As of March 31, 2015, approximately $470 million in letters of credit were outstanding under our $3.3
billion revolving bank credit facility. During the year ended March 31, 2015, the amount of the letter of credit required
pursuant to the Report and Order was reduced in total by $444 million from $850 million to $406 million. As a result of the
outstanding letters of credit, which directly reduce the availability of the revolving bank credit facility, we had approximately