OVERLAND PARK, Kan. (BUSINESS WIRE), May 29, 2012 - Sprint Nextel (NYSE:S, news, filings) announced today that it has entered into a new $1 billion credit facility with Deutsche Bank and a syndicate of other banks to finance equipment purchases from Ericsson (NASDAQ:ERIC, news, filings) for Network Vision. The borrowers under the secured credit facility are all of Sprint’s subsidiaries that currently guarantee Sprint’s revolving bank credit facility, and the obligations will be secured by a lien on the equipment purchased from Ericsson in connection with Network Vision and guaranteed by Sprint.
The secured credit facility expires in March 2017 and benefits from a cost of funding of approximately 6 percent provided by AB Svensk Exportkredit and comprehensive insurance cover from EKN, the Swedish Export Credit Agency. Deutsche Bank acted as one of the Mandated Lead Arrangers and as Facility Agent.
The covenants under the secured credit facility are similar to those of Sprint’s revolving bank credit facility and those of the guaranteed Notes due 2018 and the guaranteed Notes due 2020.
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 56 million customers at the end of the first quarter of 2012 and is widely recognized for developing, engineering and deploying innovative technologies, including the first 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; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. Newsweek ranked Sprint No. 3 in its 2011 Green Rankings, listing it as one of the nation’s greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint.