US wireless operator Sprint Nextel has secured a US$1bn credit facility arranged by Deutsche Bank and a consortium of other banks.
The money will go towards purchasing equipment from Swedish vendor Ericsson for its subsidiary Network Vision.
“The…
US wireless operator Sprint Nextel has secured a US$1bn credit facility arranged by Deutsche Bank and a consortium of other banks.
The money will go towards purchasing equipment from Swedish vendor Ericsson for its subsidiary Network Vision.
“The secured credit facility expires in March 2017 and benefits from a cost of funding of approximately 6% provided by AB Svensk Exportkredit and comprehensive insurance cover from EKN, the Swedish export credit agency,” Sprint explained.
Deutsche Bank acted as MLA and facility agent.
The company added that the covenants under the credit facility are similar to those of Sprint’s revolving bank credit facility and those of the guaranteed notes dues 2018 and the guaranteed notes due 2020.
Sprint is expected to soon roll out 3G and 4G technology on its 800MHz specialised mobile radio licences after the Federal Communications Commission (FCC) lifted rules restricting how it could utilise the spectrum.
Today, the company also announced that it is looking to redeem a portion of fourth quarter 2013 debt maturities with an aggregate principal amount of US$1bn on 8 June. The securities comprising the partial debt retirement are the Nextel Communications 6.875% notes due 2013, the company said.
The company added that, after this partial retirement, its remaining outstanding principal balance of such notes will be about US$473m.
