real-time news and commentary for investors
Wednesday, Sep 4
Sprint sells $6.5B in high-yield debt
- Sprint (S) has sold $2.25B worth of 7.25% notes due 2021, and $4.25B worth of 7.875% notes due 2023. (PR)
- The #3 U.S. carrier, fresh off receiving a cash infusion from 78% owner SoftBank (SFTBF.PK), says it will use the proceeds for "general corporate purposes, which may include, among other things, redemptions or service requirements of outstanding debt and network expansion and modernization."
- The WSJ reports the deal saw $10B in orders, and "was so large that Sprint could not capture the lowest rates possible." A source says a likely priority for the funds is the redemption of the $4B in debt held by Clearwire.
- SoftBank has made it clear it intends to have Sprint invest aggressively to build out its 4G infrastructure. Verizon and (to a lesser extent) AT&T have big head starts here.
- Verizon is in the midst of raising $63B in debt to help finance its $130B (half-cash, half-stock) purchase of Vodafone's 45% Verizon Wireless stake.