US mobile operator Sprint Corporation has priced US$2.5bn of senior unsecured 7.125% notes.
The 11-year paper will be used to refinance outstanding debt and to expand and modernise Sprint’s network.
According to reports, the notes priced at par and…
US mobile operator Sprint Corporation has priced US$2.5bn of senior unsecured 7.125% notes.
The 11-year paper will be used to refinance outstanding debt and to expand and modernise Sprint’s network.
According to reports, the notes priced at par and will yield 428 basis points more than similar-maturity treasuries.
Sprint last hit the bond market in September when it issued a record-breaking US$6.5bn junk bond issue.
Moody’s has rated the private offering B1, four notches below investment grade. Fitch assigned its equivalent rating of B+.
In a memo Fitch said: “The cumulative US$26bn in capital spending the next four years … reflects the underinvestment in Sprint’s network and the need to accelerate the deployment of capital to improve Sprint’s competitive position.
“Looking forward, as Sprint leverages its cost reduction efforts, significant margin expansion should occur in the 2014 and 2015 timeframe. Cost reduction efforts could drive up to US$2bn in savings. The improved cash generation when coupled with reduced capital investment should allow for the company to strengthen its financial profile.”
