telecommunications

Sprint to raise $2B in debt, may use to fund Clearwire

Posted 2/27/12

NEW YORK - Sprint Nextel Corp., the third-largest U.S. wireless operator, said it plans to sell $2 billion in notes to help pay for refinancing, network upgrades and possible funding for its wireless partner Clearwire Corp.

Sprint will sell notes in a private placement that will come due in 2017 and 2020, the Overland Park, Kan.-based company said in a statement Feb. 27. Sprint raised $4 billion through a debt offering in November to help with network spending and financing for Clearwire.

The return trip to the capital markets shows Sprint is raising cash to cover the growing costs of upgrading its wireless network to higher-speed technology and selling mobile devices that require subsidies, such as Apple Inc.’s iPhone. Sprint, which has lost money for the last five years, is struggling to compete against larger rivals AT&T Inc. and Verizon Wireless.

The move comes after Sprint’s board voted down a possible acquisition of the smaller MetroPCS Communications Inc., a person familiar with the plan said last week. The board decided the stock and cash transaction, which may have cost as much as $8 billion including debt, would have been too expensive given the current level of Sprint’s stock price.

Sprint closed at $2.47 on Feb. 24 and has dropped 42 percent over the past year, before Monday.

The carrier has a four-year $15.5 billion commitment to pay Apple for the iPhone and in its annual report filed today, Sprint says it has $29.5 billion in additional payment commitments though 2017.

Calendar
PBN Hosted
Events

Join PBN and two panels of successful female executives, business owners and entrepreneurs as we delve into what women should do to advance their careers, and become leaders in the corporate world and their own enterprises.
  • Book of Lists Party
    Save the date - January 15, 2015 for PBN's Book of Lists Party at the Providence ...
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement