American wireless operator Sprint Nextel has sealed a new US$2.8bn revolving credit facility.
The unsecured revolver matures in 2018 and replaces the Kansas-based operator’s US$2.2bn facility that was set to expire in October.
As well as providing…
American wireless operator Sprint Nextel has sealed a new US$2.8bn revolving credit facility.
The unsecured revolver matures in 2018 and replaces the Kansas-based operator’s US$2.2bn facility that was set to expire in October.
As well as providing extra liquidity, Sprint said in an SEC filing that the facility will be used to support the letter of credit required by the FCC to reconfigure the 800MHz band.
In May last year the FCC lifted restrictions on how this frequency band could be used; previously there had been fears of possible interference between commercial wireless services and public safety operations that run on the spectrum.
The decision allowed Sprint to roll out 3G and 4G technology on the 800MHz band.
Sprint also disclosed the conditions of the facility in the filing, saying that its net debt to EBITDA ratio could not exceed 6.25 up until June 2014. After that point the maximum leverage ratio it can have will slowly decline until the end of 2016 when it will become fixed at 4.0.
JP Morgan is administrative agent and Citigroup is syndication agent for the revolver. They are also issuing banks, alongside BofA Merrill Lynch, Barclays and Wells Fargo.
The terms also state that Japan’s Softbank is permitted to hold the facility – the Japanese group is currently pursuing regulatory and shareholder approvals for its US$20.1bn offer to acquire a 70% stake in Sprint.
