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.
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.
"Sprint has sold 4.5 million iphones since they signed the contract with Apple last October". With 1.5 million iphones sold per quarter Sprint is on pace to to make this investment a + rather than a -. With the iPhone 5 possibly coming soon, you think Sprint is going to sell less Iphones?
Sprint stocks is almost at $5 a share too btw. Was at $2.50 last year. I think theyre finally getting over that WiMax fail.
awhh WiMax... smh... in 10 years we'll be looking back like "remember wimax LOL" (most people wont)
I will be switching from Sprint next year, me and 5 of my friends at my job have Sprint and we barely get a signal for the past 2 months. Called Sprint 3 times and they fix it then it goes out again. I use my phone most work and im on wifi when I get home so I could care less about unlimited data if can't even access the damn internet. Sad cause I been with Sprint for almost 10 years :(
If you only knew all the stuff going on behind the curtains. Lets just say: Theres a reason signal has dropped in the past 3 months BUT Theres a reason Sprint's stocks have doubled in the past 3 months.
Your signal will be bad for a while but its temporary, and well worth it.
As 305Bucko mentioned, Sprint is re-building all of their networks from the ground up. Some markets have already been upgraded, others will be upgraded in the coming months to faster 3G, LTE, HD Voice and eventually VoLTE. Sprint is future-proofing their network, something other carriers will have to do eventually and dont have the spectrum capacity Sprint / Clearwire has. This time next year they will have one of the strongest, fastest, highest capacity nationwide networks.
As far as the article, this is good news for Sprint, paying down debt early, they are adding new customers, the iPhone is selling well, a strong Android portfolio and Network Vision is the last missing piece of the puzzle. Now is the time to buy Sprint stock.
A discussion is a place, where people can voice their opinion, no matter if it is positive, neutral or negative. However, when posting, one must stay true to the topic, and not just share some random thoughts, which are not directly related to the matter.
Things that are NOT allowed:
Off-topic talk - you must stick to the subject of discussion
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