Sprint 4G Rollout Updates
Monday, February 27, 2012 - 6:01 PM MST
Our beloved Sprint today announced that it is putting up for sale $2 Billion in notes to help pay its struggling partner in crime, Clearwire. Sprint also plans to refinance some other debts coming due and pay additional unnamed network upgrades with the proceeds.
Sprint only recently raised $4 billion in the debt markets in early December to pay for up front Network Vision costs and to help pay some Clearwire bills, err, uhh, provide initial payments for long term WiMax and LTE usage. This move to the debt markets is critical for Sprint, as it needs billions to initiate and complete the build out of its Network Vision program ($10 Billion) and to fulfill its contract obligations with Apple to carry the iPhone ($15 Billion). These moves are seen as the most critical elements for a Sprint renewal and resurgence to profitability and sustainability.
This newest run for more money is an optimistic sign that Sprint believes the market will provide them with cash they need. Sprint will sell notes due in 2017 and 2020. The sale is to be completed March 1st and includes the five-year notes at 9.13% and eight-year debt at 7%, which will be guaranteed by units in Sprint.
Source: Business Week