Sprint's Clearwire subsidiaries to redeem two series of 12% notes

By Toni Weeks

San Luis Obispo, Calif., Oct. 24 - Sprint Corp. announced that wholly owned subsidiaries Clearwire Communications LLC and Clearwire Finance, Inc. intend to fully redeem their 12% senior secured notes due 2015 and 12% second-priority secured notes due 2017.

According to a press release, both redemptions will occur on Dec. 1. The 12% notes due 2015 will be redeemed at 103, and the 12% notes due 2017 will be redeemed at par plus the applicable premium.

The applicable premium is the greater of (1) 1% of the principal amount and (2) the excess of (i) the present value at the redemption date of (a) 106% of the principal amount of such notes, plus (b) all required interest payments due through Dec. 1, 2014, excluding accrued but unpaid interest to the redemption date, computed using a discount rate equal to the Treasury rate as of the redemption date plus 50 basis points; over (ii) the principal amount of such notes.

Sprint is an Overland Park, Kan.-based telecommunications company. Clearwire is a Bellevue, Wash.-based mobile broadband services provider.

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