Sprint uses receivables to land $1.3B credit facility

|About: Sprint Corporation (S)|By:, SA News Editor

Several banks are providing Sprint (S -5.6%) with a $1.3B credit facility backed by its accounts receivable. The receivables are expected to be sold on a revolving basis through the term of the agreement. The agreement's revolving period is set to end in two years.

Sprint has been spending heavily on capex as it scrambles to narrow Verizon/AT&T's LTE coverage lead - its 2014 capex budget is $8B - and has also reportedly been lining up financing for a T-Mobile bid. The carrier ended Q1 with $26.6B in net debt.

Shares sold off today after rallying yesterday in the wake of a positive FCC spectrum auction ruling.