Sprint Corporation, the US’ number three wireless operator, has priced a two-tranche US$6.5bn high-yield bond offering, the largest such issue by any company since 2008, according to Bloomberg data.
The offering is split between US$2.25bn of 7.25%…
Sprint Corporation, the US’ number three wireless operator, has priced a two-tranche US$6.5bn high-yield bond offering, the largest such issue by any company since 2008, according to Bloomberg data.
The offering is split between US$2.25bn of 7.25% notes due 2021 and US$4.25bn of 7.875% notes maturing in 2023. The sale of the notes is expected to be completed on 11 September, Sprint said in a statement.
Yesterday, the company said that proceeds may be used to redeem or service outstanding debt, and for network expansion and upgrades.
The operator had net debt of US$17.7bn as of 30 June, before its acquisition of Clearwire and its takeover by Japan’s Softbank. Both transactions closed in July.
Led by JP Morgan Chase, the offering attracted US$10bn of orders, according to the Wall Street Journal citing a source familiar with the matter.
Other banks on the deal reportedly include Deutsche Bank, BofA Merrill Lynch, Citigroup, Credit Agricole, Credit Suisse, Goldman Sachs, RBC, Scotia, Wells Fargo and Williams.
Fitch has assigned a B+/RR4 rating to the US$6.5bn offering, saying it reflects its view that “Sprint’s financial profile will remain weak through 2014 due to the significant cash deficit during the next two years and the associated debt borrowing that will increase leverage”.
The largest high-yield offering in recent years dates back to June 2008 when satellite operator Intelsat priced US$7.1bn worth of bonds.
