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Sprint Nextel Secures $1 Billion in Funding for Ericsson Equipment Purchases
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USA based Sprint Nextel 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.
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 its "Network Vision" upgrade 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 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.
Tags: [sprint nextel] [ericsson] [USA]
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