Sprint closes on new $1.5B unsecured credit line; removes ratings trigger from Global Markets A/R asset securitization facility

August 12, 2002

1 Min Read

OVERLAND PARK, Kan. -- Sprint (NYSE: FON, PCS) announced today that it has closed its new $1.5 billion revolving bank credit facility. As previously announced, the facility is unsecured, with no springing liens, and is structured as a 364-day credit line with a subsequent one year term-out option. This new facility replaces an existing $2 billion facility that would have expired in August 2003. Sprint has no plans to draw against the new facility. Sprint also announced that it has amended its Global Markets accounts receivable asset securitization facility to remove a ratings trigger. Removal of the trigger will assure that any actions taken by rating agencies will not affect access to the facility. Further, the lenders have issued commitment letters to extend the Global Markets accounts receivable asset securitization facility. Similar to the recently announced PCS accounts receivables facility, it will be structured as a three-year program, subject to annual renewals by the lenders. The lenders have committed to the first year of the program. Definitive documents pursuant to these commitments are expected to be executed in the next several weeks. As previously disclosed, Sprint believes that it has sources of liquidity far in excess of foreseeable cash requirements. Sprint expects to be free cash flow positive in 2003 and beyond and therefore contemplates reduction of debt levels with limited, if any, reliance on public capital markets for financing. The evaluation of offers for Sprint's directory publishing business continues on schedule. Should Sprint decide to sell the business, it would further enhance liquidity as the immediate cash proceeds would be expected to be in excess of $2 billion after taxes. Sprint Corp.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like