Mobile operator Sprint Nextel has priced its offering of US$1bn of 11.5% notes due in 2021 and US$3bn of 9% notes due in 2018, with the intention of potentially using the funds to assist WiMAX wholesaler Clearwire.
In a statement, Sprint said that it…
Mobile operator Sprint Nextel has priced its offering of US$1bn of 11.5% notes due in 2021 and US$3bn of 9% notes due in 2018, with the intention of potentially using the funds to assist WiMAX wholesaler Clearwire.
In a statement, Sprint said that it intends to use the net proceeds of the private placement for general corporate purposes. It added that these purposes could include “among other things, redemptions or service requirements of outstanding debt, network expansion and modernization and potential funding of Clearwire Corporation, and its subsidiary, Clearwire Communications LLC”.
Sprint said that the 2018 notes would be guaranteed by its wholly-owned subsidiaries, which guarantee its existing credit agreements. It added that the sale of the notes is expected to be completed on 9 November.
IFR magazine reported that the sole bookrunner for the transaction was JP Morgan.
Sprint holds a 54% stake in Clearwire.
In October, Sprint announced a non-binding co-operation agreement with the WiMAX wholesaler, which will see the two companies working together on the technical specifications for the LTE network that Clearwire is planning to build.
