Wireless Industry News » Sprint to snag $2.2B in network equipment sale, lease
Sprint and parent company SoftBank set up a separate entity to purchase $2.2B in network equipment to move to lower funding concerns.
Sprint and parent company SoftBank moved on previously announced plans to set up a separate entity designed to acquire Sprint network assets for $2.2 billion, and then lease those assets back to the carrier.
The deal is said to allow Sprint to meet upcoming debt maturities, which published reports indicated included $34 billion in outstanding debt, which is more than twice its current market capitalization, and need to meet $2.3 billion in debt payments this year.
“Sprint and SoftBank have worked together again to create a unique structure that provides Sprint with an attractive source of capital,” explained Sprint CFO Tarek Robbiati. “This transaction is an important first step in addressing upcoming debt maturities and allows us to stay focused on our corporate transformation, which involves growing top line revenues and aggressively taking costs out of the business to improve operating cash flows.” Read More