Sprint - Nextel 2015 Annual Report Download - page 57

Table of Contents
Delcredere| Ducroire(D/D)
The D/D secured equipment credit facility provides for the ability to borrow up to $250 million to finance network equipment-related purchases from
Alcatel-Lucent. During the year ended March 31, 2016 , we had drawn $32 million on the facility, resulting in a total principal amount of $32 million outstanding
at March 31, 2016 .
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 facility's credit agreement. In addition, repayments of outstanding amounts borrowed under the secured equipment credit
facilities cannot be redrawn. 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.
As of March 31, 2016 , our Leverage Ratio, as defined by the revolving bank credit facility, EDC Agreement and all other equipment credit facilities
was 4.1 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 repayments due for notes and credit facilities as of March 31, 2016 :
*This table excludes (i) $320 million in letters of credit outstanding under our unsecured revolving bank credit facility, which will expire in 2018 and has no outstanding balance, (ii) all capital
leases and other financing obligations, and (iii) net premiums and debt financing costs.
Liquidity and Capital Resources
As of March 31, 2016 , our liquidity, including cash and cash equivalents, short-term investments, available borrowing capacity under our revolving
bank credit facility and availability under our Receivables Facility was $5.7 billion . Our cash and cash equivalents and short-term investments totaled $2.6 billion
as of March 31, 2016 compared to $4.2 billion as of March 31, 2015 . As of March 31, 2016 , we had approximately $3.0 billion of borrowing capacity available
under our revolving bank credit facility. Amounts available under our Receivables facility as of March 31, 2016 totaled $94 million .
In addition, we had a combined available borrowing capacity of $645 million under our K-sure and D/D secured equipment credit facilities as of
March 31, 2016 . As of April 1, 2016 up to $520 million of the third tranche under our Finnvera secured equipment credit facility became available. However,
utilization of these facilities is dependent upon the amount and timing of network-related purchases from the applicable suppliers, as well as the period of time
remaining to complete any further borrowings available under each facility.
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