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Sprint Communications gets commitments for $3.2 billion facility
By Marisa Wong
Morgantown, W.Va., Sept. 25 – Sprint Communications, Inc., a wholly owned subsidiary of Sprint Corp., entered into a commitment letter on Wednesday with JPMorgan Chase Bank, NA, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Deutsche Bank AG Cayman Islands Branch and Mizuho Bank, Ltd. for an up to $3.2 billion credit facility, according to an 8-K filing with the Securities and Exchange Commission.
Commitments will terminate on March 20, 2019. Borrowings under the facility will mature one month from the date of the initial borrowing, provided that the maturity date can be extended on a monthly basis, but in no event later than March 20, 2019.
Borrowings will bear interest at Libor plus an applicable margin ranging from 125 basis points to 425 bps, based on the number of days elapsed from Wednesday.
The credit facility will provide supplemental liquidity for general corporate purposes.
Commitments and the amount of any outstanding borrowings under the facility with a maturity extension option will be automatically reduced by amounts equal to a portion of proceeds from asset sales.
Obligations under the credit facility will be subordinated to debt under the company’s secured revolving and term loan credit facility and its secured credit agreement with Export Development Canada.
Sprint is an Overland Park, Kan.-based communications services company.
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