US mobile operator Sprint Corp has increased the size of its 7.625% unsecured notes offering by US$500m to US$1.5bn. In an SEC filing, Sprint said the notes priced at par, 551 bps over US treasuries, and were due to mature in 2025. The operator, owned…
US mobile operator Sprint Corp has increased the size of its 7.625% unsecured notes offering by US$500m to US$1.5bn.
In an SEC filing, Sprint said the notes priced at par, 551 bps over US treasuries, and were due to mature in 2025.
The operator, owned by Japanese group Softbank, has mandated banks across North America, Europe and Asia to market the placement.
The joint book-running managers are Citigroup, Goldman Sachs, JP Morgan, BofA Merrill Lynch, Barclays, Credit Agricole, Credit Suisse, Deutsche Bank, Mitsubishi UFJ, Mizuho, RBC Capital, Scotia Capital and SMBC.
Proceeds from the debt issue will be used for working capital requirements, to address outstanding debt, and to expand and modernise its network.
Fitch rated the notes B+, four notches below its investment grade threshold. In a memo to investors, it noted Sprint’s weak standalone financial profile and the intense competitive environment in the US mobile market, but kept the company’s outlook as stable, in part due to the continued support of parent Softbank.
