Jump to content

Sprint Receives First Cash Infusion from SoftBank


marioc21
 Share

Recommended Posts

Sprint completed a convertible bond offering for $3.1 billion yesterday. As you can guess the sole bond purchaser was SoftBank. The Bonds are convertible into approximately 20% of the outstanding common stock of Sprint. This is the first phase of the equity investment from SoftBank.

 

http://finance.yahoo.com/news/sprint-announces-closing-3-1-210900554.html

  • Like 4
Link to comment
Share on other sites

I think that money will more than likely go to acquisitions.

 

Acquisitions? Okay, I think that Sprint should acquire this Warhol. It is up for auction at Sotheby's with an estimate of $2.5 million.

 

warhol_andy-four_multicoloured_marilyns_reversal_~OMf2d300~10000_20121024_PF1229_23.jpg

 

http://www.sothebys.com/en/auctions/ecatalogue/2012/collection-mis-art-moderne-et-contemporain/lot.23.lotnum.html

 

AJ

  • Like 3
Link to comment
Share on other sites

They may retire debt. However, I think SoftBank has a very specific idea in mind for Sprint with that money. And I would be surprised if SoftBank is focusing on Sprint debt before they take it over. This is liquid cash that Dan Hesse needs to do something with. An acquisition? Maybe. Network Vision acceleration? Maybe. Maybe even something else. But debt payments doesn't seem likely, as Sprint has all their payments worked into their cash flow for this year already figured.

 

SoftBank hasn't even wrested control of Sprint and have regulatory approval yet. For them to be loaning money to Sprint in advance, it must be something very important to Mr. Son in the short term.

 

Robert via Nexus 7 using Forum Runner

  • Like 5
Link to comment
Share on other sites

They may retire debt. However, I think SoftBank has a very specific idea in mind for Sprint with that money. And I would be surprised if SoftBank is focusing on Sprint debt before they take it over. This is liquid cash that Dan Hesse needs to do something with. An acquisition? Maybe. Network Vision acceleration? Maybe. Maybe even something else. But debt payments doesn't seem likely, as Sprint has all their payments worked into their cash flow for this year already figured.

 

SoftBank hasn't even wrested control of Sprint and have regulatory approval yet. For them to be loaning money to Sprint in advance, it must be something very important to Mr. Son in the short term.

 

Robert via Nexus 7 using Forum Runner

 

You make great points here, maybe it is to have the cash on hand for a MetroPCS counter offer. Whether is is real or to just raise the price/get spectrum.

Link to comment
Share on other sites

 

No takers? I guess not. Besides' date=' Robert might prefer that Sprint acquire a nice O'Keeffe.

 

It would look great in Dan's office. Plus, the Japanese love high dollar art.

 

;)

 

AJ[/quote']

 

I am an O'Keefe fan. Except for the vagina flower painting. That thing scares me ever so. :hee:

 

Robert via Nexus 7 using Forum Runner

Link to comment
Share on other sites

They may retire debt. However, I think SoftBank has a very specific idea in mind for Sprint with that money. And I would be surprised if SoftBank is focusing on Sprint debt before they take it over. This is liquid cash that Dan Hesse needs to do something with. An acquisition? Maybe. Network Vision acceleration? Maybe. Maybe even something else. But debt payments doesn't seem likely, as Sprint has all their payments worked into their cash flow for this year already figured.

 

SoftBank hasn't even wrested control of Sprint and have regulatory approval yet. For them to be loaning money to Sprint in advance, it must be something very important to Mr. Son in the short term.

 

Robert via Nexus 7 using Forum Runner

 

You're right. Something is else is probably coming down the pike. Sprint's next debt obligation in 2013 is only for $300 million. They repaid about $470 million earlier this year. Their next major debt payment isn't due until 2014. (Although it's a big debt repayment of about $1.4 billion.) So this is gives them an awful lot of cash to play with. At the end of the Q2 they reported having $6.8 billion in cash and cash equivalents. Add this to the pile and you've got some spreading around money.

Link to comment
Share on other sites

Really put the pressure on t-Mobile, put an offer out there and stick it in escrow. One of 3 things...

 

1. T-Mobile has to raise their price

2. Sprint gets Metro, use the spectrum, sell off the AWS

3. T-Mobile has to make concessions of PCS spectrum to get deal approved, Sprint uses cash to buy needed PCS spectrum.

  • Like 3
Link to comment
Share on other sites

No matter what sprint spends the money on, it'll benefit us.

 

Corrected;

No matter what sprint spends the money on, it'll benefit us the company.

 

Whether it benefits 'us' is irrelevant, all of this they are doing is for the company(ies).

Link to comment
Share on other sites

 

Acquisitions? Okay, I think that Sprint should acquire this Warhol. It is up for auction at Sotheby's with an estimate of $2.5 million.

 

warhol_andy-four_multicoloured_marilyns_reversal_~OMf2d300~10000_20121024_PF1229_23.jpg

 

http://www.sothebys.com/en/auctions/ecatalogue/2012/collection-mis-art-moderne-et-contemporain/lot.23.lotnum.html

 

AJ

 

LMFAO....all commercials from now on will have a voice over the still shot of the Warhol.

 

 

Sent from my EVO LTE-LESS using Tapatalk 2

 

 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

  • large.unreadcontent.png.6ef00db54e758d06

  • gallery_1_23_9202.png

  • Posts

    • The Kendall/Kerr/Gillespie PCS swap is a very nice win-win for AT&T and T-Mobile. Means both of them will have a 20x20 PCS channel, though in exchange T-Mobile goes from 10x10 to 5x5 on one of their spectrum blocks. I figure AT&T will start running n2 DSS on that channel, as they have enough customers in those areas to need the capacity, while T-Mobile will probably just run B2 LTE, as once Auction 108 finally clears they'll have plenty of n41 to play with. Guessing we'll see the non-G-block 5x5 slice running n25, but it would get aggregated with n71 rather than n41 I figure as n71 will remain 20x20 there until the STA goes away (and maybe after that, as if T-Mobile gets 700 MHz as the result of VZW buying West Central Wireless's spectrum there's no reason to run LTE in 600). Which makes me think that the next move is T-Mobile trading 700A for the 5x5 of orphaned PCS (E block) to VZW once the WCW transaction closes, as that would give VZW 20x20 PCS in the area, and would give T-Mobile 700 MHz in an area where they have none. Then VZW can either trade 700B to T-Mobile as well in exchange for the AWS I block in those areas (gives T-Mobile 10x10 B12, gives VZW 15x15 B66) or they can cut a deal with AT&T to give AT&T 10x10 B12 (AT&T has the lower C block), but I'm not sure what that deal would be if trading like for like (vs. AT&T handing VZW their upper tiny slice of B5, giving VZW 15x15 to play with in that band post-WCW-acquisition). EDIT: Just looked at AWS spectrum again, and if AT&T would rather have 10x10 B12 than 2x 10x10 AWS, they could swap AWS-D for VZW's 700B block. That would give VZW 20x20 AWS, and would take AT&T down to 10x10 + 5x5...which they'd likely be fine with as they have 20x20 PCS, small cells in the busy areas, and as a result of the transaction three 10x10 chunks of spectrum in the area below 1 GHz. And if VZW traded 700A to T-Mobile for PCS-E VZW would have 20x20 PCS as well. Which is quite useful in an area that's macro-only for VZW and likely not dense enough for proper mobile usage of CBRS or C-Band (and an area where VZW doesn't even run DSS now).
    • Yeah, $250 credit for an S22 is awful. tbf last year they didn't have solid upgrade credits until mid-late April, which is when I paid $225 to swap my S21 for an S22. Happy to wait 'til then for that kind of deal, though I'll be annoyed at battery life in the mean time.
    • Miserable upgrade credits from Samsung this year unless you want to rely on carrier financing. Sticking with S22U for a while. 
    • So far we've documented close to 100 Sprint conversions in NYC with permits still rolling in and that's only what we've identified manually. Tons of sites get converted/updated without permits so there's potentially a lot more that we haven't spotted yet. There are also dozens of sites that are still broadcasting the keep PLMN, some have been decommissioned but historically the vast majority have been converted.
  • Recently Browsing

    • No registered users viewing this page.
×
×
  • Create New...