Sprint Nextel amends facility to boost commitment to $2.24 billion

By Jennifer Chiou

New York, Oct. 26 - Sprint Nextel Corp. announced that it amended its revolving credit facility, lifting the commitment by $150 million to a total amount of $2.24 billion.

In addition, the amendment modifies the definition of EBITDA to permit Sprint to add back in its calculation of EBITDA certain equipment net subsidy costs, according to a news release.

As of Sept. 30, Sprint said that its total liquidity was $5 billion, consisting of $4 billion in cash, cash equivalents and short-term investments and $1 billion of undrawn borrowing capacity under its credit facility.

The facility expires in October 2013 and will continue to provide supplemental liquidity for general corporate purposes. It will be used to support the $1 billion letter of credit required by the Federal Communications Commission, according to an 8-K filing with the Securities and Exchange Commission.

Sprint is an Overland Park, Kan.-based wireless services provider.

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