Sprint signed three new vendor financing facilities totaling $1.8 billion to purchase 2.5 GHz network equipment and related services from key suppliers. The company also amended some existing equipment credit facilities.
Highlights:
- A new secured facility for up to $800 million has been signed with Nokia Networks, maturing in June 2021. It is backed by credit insurance provided by Finnvera plc, the export credit agency of Finland.
- A new secured facility for up to $750 million has been signed with Samsung, maturing in Dec. 2022. It is backed by credit insurance provided by the Korea Trade Insurance Corporation (Ksure), the export credit agency of Korea.
- A new secured facility for up to $250 million has been signed with ALU, maturing in Dec. 2021. It is backed by credit insurance provided by Delcredere | Ducroire (D/D), the export credit agency of Belgium.
- With ALU’s assistance, Sprint amended and expanded by $300 million its credit relationship with Export Development Canada (EDC) as well as amended the terms of its existing secured equipment credit facility. The total outstanding borrowings from EDC now amount to $800 million.
- Sprint has amended the terms of the secured equipment credit facility that it used to finance $1 billion in purchases of network equipment and related services from Ericsson.
In addition, the FCC recently approved Sprint’s request to reduce the Letter of Credit (LOC) for 800 MHz incumbent reconfiguration costs by an additional $22.6 million. This lowered the LOC to approximately $434 million and follows the FCC’s approval of a reduction from $850 million to $457 million earlier in 2014.
