Last month, we told you that Sprint's large mountain of debt could hinder plans it has to finish building out its nationwide LTE network. But the nation's third largest carrier informed us today that it plans on paying down some of its debt with maturities in 2013 and 2015. This should help the company become more flexible when it comes to putting up those LTE towers like the one that was recently erected in Homestead, Florida.
Sprint LTE cell tower
A total of $1.5 billion of Notes will be retired including debt maturing in 2013 that will be valued at $472.9 million on August 24, 2012. The precise securities being retired are the Nextel Corp. 6.875% Notes due 2013. In addition, debt maturing in 2015 with a value of $1 billion as of August 24th will also be retired. Those securities are the Nextel Corp 7.375% Notes due 2015. Holders of both Notes involved in the debt buyback will receive par (100% of face value) plus any unpaid and accrued interest.
After retiring these Notes, the remaining principal balance remaining of the 2015 Notes will be $1.1 billion.
source: Sprint
Sprint Nextel Corporation has posted the following release to its Newsroom website:
Sprint Nextel to Retire $1.5 Billion of 2013 and 2015 Debt Maturities
OVERLAND PARK, Kan. (BUSINESS WIRE), August 14, 2012 - Sprint Nextel Corp. (NYSE:S) announced today it intends to redeem the remaining portion of 2013 debt maturities with an aggregate principal amount of $472.9 million on August 24, 2012. The securities comprising this debt retirement are the Nextel Communications, Inc. 6.875% Notes due 2013.
The Company also intends to redeem a portion of 2015 debt maturities with an aggregate principal amount of approximately $1.0 billion on August 24, 2012. The securities comprising this debt retirement are the Nextel Communications, Inc. 7.375% Notes due 2015.
The 2013 and 2015 Notes will be redeemed at par, plus accrued and unpaid interest until the redemption date. After this retirement, the remaining outstanding principal balance of the 2015 Notes will be approximately $1.1 billion.
About Sprint Nextel
Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 56 million customers at the end of the second quarter of 2012 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. The American Customer Satisfaction Index rated Sprint No. 1 among all national carriers in customer satisfaction and most improved, across all 47 industries, during the last four years. Newsweek ranked Sprint No. 3 in its 2011 Green Rankings, listing it as one of the nation's greenest companies, the highest of any telecommunications company.
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