Subsequent Events

6 Months Ended

Sep. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Spectrum Financing

In October 2016, certain wholly-owned subsidiaries of Sprint entered into agreements (Spectrum Financing) to transfer certain directly held and third-party leased spectrum licenses (collectively, “the Spectrum Portfolio”) to wholly-owned bankruptcy-remote special purpose entities (collectively, “the Spectrum Financing SPEs”). The Spectrum Portfolio, which represents approximately 14 percent of Sprint's total spectrum holdings on a MHz-pops basis, was used as collateral to raise an initial $3.5 billion in senior secured notes at 3.36% from external investors, with the opportunity to raise up to an additional $3.5 billion under the same program, subject to certain conditions. The $3.5 billion initial issuance will be repaid over a five year term, with interest only payments over the first four quarters and amortizing quarterly principal and interest payments thereafter through September 2021.

Sprint Communications, Inc. simultaneously entered into a long-term lease with the Spectrum Financing SPEs for the ongoing use of the Spectrum Portfolio. Sprint Communications, Inc. is required to make monthly lease payments to the Spectrum Financing SPEs. As the Spectrum Financing SPEs are wholly-owned by Sprint subsidiaries, these entities will be consolidated and all intercompany activity will be eliminated.

As a result of this transaction, our $2.5 billion unsecured financing facility was terminated.