Sprint Nextel gets $2.1 billion unsecured revolving credit facility

By Sara Rosenberg

New York, May 21 - Sprint Nextel Corp. closed on a new $2.1 billion unsecured revolving credit facility due in October 2013, according to a news release.

Covenants include a ratio of total debt to trailing four-quarter EBITDA adjusted for certain other non-recurring charges of 4.50 to 1 through March 2012, reducing to 4.25 to 1 through December 2012, and to 4.0 to 1 for the remaining term.

The new facility replaces the company's $4.5 billion revolver that was due to expire in December and will be used for general corporate purposes and to support the $1.6 billion letter of credit required by the Federal Communications Commission's report and order to reconfigure the 800 MHz band..

In connection with closing on the new revolver, the company amended its $750 million credit agreement with Export Development Canada to incorporate the same covenants.

Sprint Nextel is an Overland Park, Kan.-based provider of wireless and wireline communications services.

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