US mobile operator Sprint Nextel is planning to make a private placement of notes with the aim of using at least some of the proceeds to assist WiMAX wholesaler Clearwire.
In a statement today [Friday], Sprint said it plans to offer notes maturing in…
US mobile operator Sprint Nextel is planning to make a private placement of notes with the aim of using at least some of the proceeds to assist WiMAX wholesaler Clearwire.
In a statement today [Friday], Sprint said it plans to offer notes maturing in 2018 and 2021 in a private placement.
Sprint said that it intends to use the net proceeds of the private placement for general corporate purposes. It added that these purposes could include “among other things, redemptions or service requirements of outstanding debt, network expansion and modernization and potential funding of Clearwire Corporation, and its subsidiary, Clearwire Communications LLC”.
Sprint also said that the 2018 notes would be guaranteed by its wholly-owned subsidiaries, which guarantee its existing credit agreements.
Sprint holds a 54% stake in Clearwire.
Last week, Sprint announced a non-binding co-operation agreement with the WiMAX wholesaler, which will see the two companies working together on the technical specifications for the LTE network that Clearwire is planning to build.
Sprint’s CEO, Dan Hesse, said at the time that it was necessary to get this agreement in order to clear the way for a commercial agreement between the two companies.
