Sprint starts one-month tender for $1 billion 9% notes, 8 3/8% notes

By Susanna Moon

Chicago, May 9 – Sprint Corp. said wholly owned subsidiary Sprint Communications, Inc. is tendering for up to $1 billion principal amount of its $3 billion 9% guaranteed notes due 2018 and its $1.3 billion 8 3/8% notes due 2017.

The purchase amount for the 9% notes is capped at $500 million, according to a company announcement. The notes are listed in order of priority acceptance level, with 9% notes given priority over the 8 3/8% notes.

The total purchase price for each $1,000 principal amount will be $1,100 for the 9% notes and $1,015.70 for the 8 3/8% notes.

The total payment includes an early tender premium of $30 per $1,000 principal amount of notes tendered by 5 p.m. ET on May 22, the early tender date.

Holders who tender after the early deadline will receive the total amount less the early premium.

The tender offers will continue until 11:59 p.m. ET on June 6.

The company also will pay accrued interest up to but excluding the settlement date, which will be May 23 for early tendered notes and June 7 for any remaining tenders.

Tendered notes may not be withdrawn after the early deadline.

J.P. Morgan Securities LLC (866 834-4666) and Citigroup Global Markets Inc. (800 558-3745) are the dealer managers. Ipreo LLC (212) 849-3880, 888 593-9546 or tenderoffer@ipreo.com) is the tender agent and information agent.

Sprint is an Overland Park, Kan.-based communications services company.

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