US number three-operator Sprint Nextel has revealed its latest debt offering to raise US$2.28bn.
The 10-year notes carry a coupon of 6%, priced at par and the spread was 437 basis points over US treasuries.
The offering is set to close on 14…
US number three-operator Sprint Nextel has revealed its latest debt offering to raise US$2.28bn.
The 10-year notes carry a coupon of 6%, priced at par and the spread was 437 basis points over US treasuries.
The offering is set to close on 14 November.
The telco has total debts of US$21.3bn and Sprint plans to use the proceeds to pay back existing liabilities.
Sprint will 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 2013 and US$181m maturing in 2014.
Moody’s rated the notes B3 while S&P assigned B+.
As previously reported the joint book-running managers for the offering are BofA Merrill Lynch, Barclays, Citi,Deutsche Bank, Goldman Sachs and JP Morgan.
Credit Suisse, Scotiabank and Wells Fargo are senior co-managers while Williams Capital is a co-manager.
Sprint is currently under offer from Japan’s Softbank in a US$20.1bn deal agreed in October.
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.
