US operator Sprint Nextel completed its latest bond offer raising US$2.28bn.
Sprint is currently under offer from Japanese group Softbank in a US$20.1bn deal agreed in October.
Earlier this week the operator asked holders of some of its bonds to…
US operator Sprint Nextel completed its latest bond offer raising US$2.28bn.
Sprint is currently under offer from Japanese group Softbank in a US$20.1bn deal agreed in October.
Earlier this week the operator asked holders of some of its bonds to approve the amendment of the terms of its notes, pledging to pay them US$1 if they accepted.
As previously reported the 10-year notes carry a coupon of 6%, priced at par and the spread was 437 basis points over US treasuries.
On a variety of notes maturing between 2017 and 2022, Sprint is required to buy back the bonds if there is a change in control of the company.
Sprint would have to pay 101% of the bonds’ face-value plus any accrued and unpaid interest.
The telco has total debts of US$21.3bn and Sprint plans to use the proceeds to retire its 2014 and 2015 Nextel notes.
It will buyback its US$1.16bn of 5.95% Nextel Communications notes due 2014 and the remaining portion of its US1.1bn of 7.375% Nextel Communications notes due 2015.
Sprint says it will have US$300m maturing in 2013 and US$181m maturing in 2014.
Moody’s rated the notes B3 while S&P assigned B+.
The joint book-running managers for the offering were BofA Merrill Lynch, Barclays, Citi, Deutsche Bank, Goldman Sachs and JP Morgan.
Credit Suisse, Scotiabank and Wells Fargo acted as senior co-managers while Williams Capital was co-manager.
Under the terms of the bond Sprint will be required to offer to purchase the notes at 101% of their aggregate principal amount if there is a change of control.
Subject to approvals Softbank’s proposed takeover of Sprint could close in mid-2013.
