Exhibit (c) (8)
Illustrative Future Realizable Spectrum Value
Key Assumptions
Based on Single Customer Case (SCC)
Assumes spectrum sale to Dalmatian per current term sheet General
Creditors do not tender debt
– Proceeds of sale used to fund continued LTE buildout
Gross value: $2.46bn
– ~$0.216/MHz-pop
Dalmatian – ~$177mm NPV of spectrum lease Transaction payments
– ~$200 tax liability
Net value: $2.1bn
Summary of Proceeds
Gross Proceeds to Collie $2,460
(Less): NPV of Spectrum Leases (177) (Less): Cash Taxes (200)
Net Proceeds to Collie $2,083
Pro Forma Capitalization
2012 2013 2014 2015 Status Quo
Gross Debt $4,486 $4,463 $4,449 $4,449 Plus: NPV Spectrum Leases 1,800 1,800 1,800 1,800 (Less): Cash / Plus: Funding Gap (828) 301 1,882 3,181
Net Debt $5,457 $6,564 $8,132 $9,430
Pro Forma for Dalmation Transaction
Gross Debt $4,486 $4,463 $4,449 $4,449 Plus: NPV Spectrum Leases 1,623 1,623 1,623 1,623 (Less): Cash / Plus: Funding Gap (2,911) (1,782) (201) 1,098
Net Debt $3,197 $4,304 $5,872 $7,170
Source: Financial projections per Collie management. Note: $ in millions.
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Illustrative Future Realizable Spectrum Value
Present Value (YE’12) at Various Costs of Equity
$ / MHz-pop Paid @ 12/31/2014 $0.200 $0.250 $0.300 $0.350 $0.400 $0.450 $0.500 Pro Forma Capitalization PF ‘I4E TEV @ 35.6bn MHz-pops $7,127 $8,908 $10,690 $12,471 $14,253 $16,035 $17,816
(Less): Debt (4,449) (4,449) (4,449) (4,449) (4,449) (4,449) (4,449) (Less): PF NPV Spectrum Leases (1,623) (1,623) (1,623) (1,623) (1,623) (1,623) (1,623) Plus: Cash 201 201 201 201 201 201 201
PF ‘I4E Equity Value $1,255 $3,036 $4,818 $6,600 $8,381 $10,163 $11,945
PF ‘I4E Stock Price $0.84 $2.03 $3.22 $4.42 $5.61 $6.80 $7.99
Breakeven Present Value (YE’12) at Various Costs of Equity
$ / MHz-pop
PV of Equity $1,037 $2,509 $3,982 $5,454 $6,927 $8,399 $9,872
10.0% $ / Share 0.69 1.68 2.66 3.65 4.63 5.62 6.60 $0.316 Required Probability(1) nm nm nm 81% 64% 53% 45%
PV of Equity $949 $2,296 $3,643 $4,990 $6,337 $7,685 $9,032
15.0% $ / Share 0.63 1.54 2.44 3.34 4.24 5.14 6.04 $0.330 Required Probability(1) nm nm nm 89% 70% 58% 49%
PV of Equity $871 $2,109 $3,346 $4,583 $5,820 $7,058 $8,295
20.0% $ / Share 0.58 1.41 2.24 3.07 3.89 4.72 5.55 $0.344 Required Probability(1) nm nm nm 97% 76% 63% 54%
PV of Equity $803 $1,943 $3,084 $4,224 $5,364 $6,504 $7,645
25.0% $ / Share 0.54 1.30 2.06 2.83 3.59 4.35 5.11 $0.359 Required Probability(1) nm nm nm nm 83% 68% 58%
Source: Financial projections per Collie management. Note: $ in millions except per share / per MHz-pop figures. (1) Required probability for value to be equivalent to $2.97.
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