DALLAS-Northern Telecom Inc. said it is syndicating about $1.1 billion of its $1.3 billion vendor credit facility with Sprint Spectrum L.P. through a group of major financial institutions.
The syndication of participation rights and loan assignments is expected to be completed early next year, the company said.
Nortel is supplying equipment and services for Sprint PCS’ personal communications services network.
The syndication is supportive of Nortel, as vendor, and Sprint Spectrum, as owner and operator of the network, according to the Dallas-based equipment manufacturer.
Approximately $600 million of the syndicated financing has been committed by the financial institutions or their affiliates, Nortel said.
The $200 million of remaining loans will be assigned to a supplier under an existing commitment to provide related financing to Nortel.
The arrangement is subject to certain conditions, including that a definitive agreement be negotiated. (See related story on Page 12).
