The US’ third-largest carrier, Sprint Corp, has sealed three new vendor financing deals worth a total US$1.8bn to buy 2.5 GHz network equipment and related services from a number of suppliers. It has also amended and expanded an existing US$500m…
The US’ third-largest carrier, Sprint Corp, has sealed three new vendor financing deals worth a total US$1.8bn to buy 2.5 GHz network equipment and related services from a number of suppliers.
It has also amended and expanded an existing US$500m credit facility from Export Development Canada due in December 2019 by US$300m.
The vendor financings consist of a secured facility for up to US$800m from Nokia Networks, due June 2021, which is backed by Finland’s export credit agency Finnvera; a secured facility for up to US$750m from Samsung due December 2022, which is guaranteed by the Korea Trade Insurance Corporation; and a secured facility for up to US$250m from Alcatel-Lucent maturing in December 2021, which is backed by Belgium’s export credit agency Delcredere | Ducroire.
The facilities will carry variable interest, consisting of six-month Libor plus a spread.
The telco has also amended the terms of an existing secured equipment credit facility that it used to buy US$1bn worth of network equipment and related services from Ericsson.
“These deals provide Sprint with greater flexibility and liquidity options as we focus on growing the business and investing in our network,” Joe Euteneuer, Sprint’s CFO said.
The Softbank-owned operator is assessing the sale of its wireline business, its CEO Marcelo Claure said in November last year.
Claure was earlier quoted as saying that the company was seeking partners to boost its operations, following the failed T-Mobile US consolidation talks. These partners could include cable and over-the-top companies as well as wireless carriers to expand its reach and benefit from economies of scale, he reportedly noted.
