Sprint Corp has entered into a facility agreement of up to US$1.3bn based on the securitisation of the receivables from the telco’s wireless service accounts.
The Bank of Tokyo-Mitsubishi UFJ served as administrative agent and The Bank of Nova Scotia,…
Sprint Corp has entered into a facility agreement of up to US$1.3bn based on the securitisation of the receivables from the telco’s wireless service accounts.
The Bank of Tokyo-Mitsubishi UFJ served as administrative agent and The Bank of Nova Scotia, Mizuho and Sumitomo Mitsui also worked on the transaction.
Sprint said the new facility will provide supplemental liquidity for general corporate purposes. The operator is currently investing heavily in its LTE network as it looks to improve its service and build out its substantial spectrum holdings so it can better-challenge market leaders Verizon Wireless and AT&T.
The receivables will be sold on a revolving basis throughout the term of the two-year agreement which began on 16 May 2014.
It is Sprint’s first significant financing transaction since it sold a US$2.5bn high-yield bond in December.
Earlier this year it was reported to have held talks with banks to discuss potential financing structures should it move to acquire smaller rival T-Mobile US.
