Virgin Mobile Terminates TRA in Connection with Acquisition by Sprint Nextel Corporation

NEW YORK, Aug. 9, 2022 /PRNewswire/ -- Parallaxes Capital Management ("Parallaxes"), the premier investment firm focused exclusively on monetizing Tax Receivable Agreements ("TRAs"), is pleased to share a notable development in the market as Virgin Mobile USA, Inc. ("Virgin Mobile" or the "Company") previously terminated its TRA.

Virgin Mobile disclosed that the Company, Sprint Nextel Corporation ("Sprint Nextel") and Corvina Holdings Limited and Cortaire Limited (together with certain affiliates, the "Virgin Group") entered into a termination and mutual release agreement in connection with Sprint Nextel's acquisition of Virgin Mobile, to effect a mutual release of the respective obligations of each party under the Tax Receivable Agreement, dated as of October 16, 2007, by and between the Company, Sprint Ventures, Inc. and the Virgin Group. Pursuant to the terms of the termination, Sprint Nextel will contribute to the Company, and the Company will pay to the Virgin Group, approximately $50 million to terminate the TRA. The Virgin Mobile TRA provided for the payment of 100% of the net cash tax savings realized from certain tax attributes, including savings from the utilization of Virgin Group's net operating losses attributable to periods prior to the IPO. 

Parallaxes Capital Management ("Parallaxes") is the premier investment firm focused exclusively on monetizing Tax Receivable Agreements ("TRAs"). Parallaxes offers private equity sponsors, co-investors and management team members solutions to achieve liquidity, diversification and optionality from their TRAs. Parallaxes was founded in 2017 and is comprised of experienced investment professionals from leading private equity and growth equity firms. To learn more, please visit https://www.parallaxescapital.com

This press release should not be regarded as representative of an official position or statement of Parallaxes or any related entity.

SOURCE Parallaxes Capital