UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 14, 2005
SPRINT CORPORATION
(Exact name of Registrant as specified in its charter)
Kansas 1-04721 48-0457967
(State of Incorporation) (Commission File Number) (I.R.S. Employer
Identification No.)
6200 Sprint Parkway, Overland Park, Kansas 66251
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (913) 624-3000
(Former name or former address, if changed since last report)
P. O. Box 7997, Shawnee Mission, Kansas 66207-0997
(Mailing address of principal executive offices)
Check the appropriate box below if the Form 8-K is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry into a Material Definitive Agreement
On February 14, 2005, Sprint Corporation ("Sprint") and certain of its
subsidiaries entered into an Agreement to Contribute, Lease and Sublease with
Global Signal Inc. (the "Agreement") under which Global Signal will have
exclusive rights to lease or operate more than 6,600 wireless communications
towers owned by the Sprint subsidiaries for up to 32 years. Global Signal will
pay approximately $1.202 billion in cash at the time of the closing, which is
expected to occur in June 2005.
In addition to its rights to lease or operate the towers, Global Signal will
take over existing collocation arrangements with tenants who lease space on
these towers. Global Signal will also be able to sublease space on the towers to
additional third-party tenants and will have the option to purchase the towers
at the end of the lease term for an aggregate purchase price of approximately
$2.3 billion.
The foregoing description of the Agreement does not purport to be complete and
is qualified in its entirety by reference to the Agreement (including the form
of lease and sublease agreement attached to the Agreement as an exhibit), which
is filed as Exhibit 10 and incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under
an Off-Balance Sheet Arrangement of a Registrant
The Agreement with Global Signal requires that, at the time of the closing, the
parties enter into a master lease and sublease agreement pursuant to which
Sprint and its subsidiaries will commit to sublease space on the towers from
Global Signal for a guaranteed minimum of 10 years at an initial rate of $1,400
per month per tower on all towers on which a subsidiary was a tenant as of
February 14, 2005 (approximately 6,400 towers). The monthly rate per tower is
subject to an annual market-based increase. Sprint may withdraw from any or all
of the towers on the tenth anniversary of the closing and on any successive
fifth anniversary after the tenth anniversary of the closing.
The foregoing description of the lease and sublease agreement does not purport
to be complete and is qualified in its entirety by reference to the form of
lease and sublease agreement, which is attached to the Agreement as an exhibit
and which is incorporated herein by reference.
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Item 9.01 Financial Statements and Exhibits
Exhibits
10 Agreement to Contribute, Lease and Sublease, dated as
of February 14, 2005, among Sprint Corporation, certain
subsidiaries of Sprint Corporation and Global Signal
Inc., including as Exhibit D the Form of Lease and
Sublease Agreement
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
SPRINT CORPORATION
Date: February 17, 2005 By: /s/ Michael T. Hyde
Michael T. Hyde, Assistant Secretary
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EXHIBIT INDEX
Exhibit
Number Description Page
10 Agreement to Contribute, Lease and Sublease, dated
as of February 14, 2005, among Sprint Corporation,
certain subsidiaries of Sprint Corporation and Global
Signal Inc., including as Exhibit D the Form of Lease
and Sublease Agreement