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8-K - FORM 8-K - SPRINT Corp | l39796e8vk.htm |
EX-10.1 - EX-10.1 - SPRINT Corp | l39796exv10w1.htm |
Exhibit 99.1
News Release
Sprint Nextel
6200 Sprint Parkway
Overland Park, Kan. 66213
6200 Sprint Parkway
Overland Park, Kan. 66213
Media Contact:
Cristi Allen, 913-315-1092
cristi.i.allen@sprint.com
Cristi Allen, 913-315-1092
cristi.i.allen@sprint.com
Investor Contact:
Yijing Brentano, 800-259-3755
investor.relations@sprint.com
Yijing Brentano, 800-259-3755
investor.relations@sprint.com
Sprint Nextel Announces New $2.1 Billion Credit Agreement
OVERLAND PARK, Kan.May 21, 2010Sprint Nextel Corp. (NYSE:S) today announced that it has entered
into a new $2.1 billion unsecured revolving credit facility. The new credit facility expires in
October 2013 and replaces the companys $4.5 billion revolving credit facility that was due to
expire in December 2010.
In the fourth quarter of 2009 and the first quarter of 2010, Sprint generated $666 million and $506
million of Free Cash Flow, respectively. The company ended first quarter 2010 with cash, cash
equivalent and short-term investments of $4.4 billion that reduce the need for a larger credit
facility and its related costs.
The new credit facility will provide supplemental liquidity for general corporate purposes and will
be used to support the $1.6 billion letter of credit required by the Federal Communications
Commissions Report and Order to reconfigure the 800 MHz band. The credit facility does not have an
outstanding balance, but letters of credit reduce the facilitys available borrowing capacity.
The new credit agreement includes a ratio of total indebtedness to trailing four quarter EBITDA
adjusted for certain other non-recurring charges to a maximum of 4.50 to 1 through March 2012,
subsequently reduced to 4.25 to 1 through December 2012, and thereafter reduced to 4.0 to 1 for the
remaining term.
The company simultaneously amended its $750 million credit agreement with Export Development
Canada, originally entered into in March 2007, to incorporate the same changes in covenants.
About Sprint Nextel
Sprint Nextel offers a comprehensive range of wireless and wireline communications services
bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel
served more than 48 million customers at the end of the first quarter of 2010 and is widely
recognized for developing, engineering and deploying innovative technologies, and the first and
only wireless 4G service from a national carrier in the United States; offering industry-leading
mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile and
Assurance Wireless and instant national and international push-to-talk capabilities; and a global
Tier 1 Internet backbone. With its customer-focused strategy, you can learn more and visit Sprint
at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint.