Sprint Chases $3B in Vendor Financing

Sprint Corp. (NYSE: S)'s CFO, Joe Euteneuer, is hoping to net up to US$3 billion in vendor funding by the end of the second quarter.

Speaking at the Barclays Capital High Yield Bond And Syndicated Loan Conference on Tuesday, Euteneuer said that the carrier is "on track" to close as much as $3 billion in funding from three separate infrastructure vendors.

"We just went out and got $2 billion ... the goal would be to complete the vendor financing, we're still in the range of $1 billion to $3 billion," Euteneuer confirmed. "We said it was a second-quarter exercise and we're still on track for that."

Why this matters
Analysts at Mizuho Securities USA Inc. estimated in January that Sprint needs $3 billion to complete its ambitious "Network Vision" upgrade and move to LTE. More recently, analyst Craig Moffett at Sanford C. Bernstein & Co. Inc. has said that the operator may even be a bankruptcy risk.

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— Dan Jones, Site Editor, Light Reading Mobile

jggveth 12/5/2012 | 5:37:52 PM
re: Sprint Chases $3B in Vendor Financing

The US gov already said no buying from Huawei.

Do Alcatel Ericsson and Cisco really want to get into the big number vendor financing game again?  Especially with a carrier that could go bankrupt as it gives all its cash flow to that fruit company in the valley. 


joset01 12/5/2012 | 5:37:51 PM
re: Sprint Chases $3B in Vendor Financing

He didn't say but did specify that three separate vendors are in the game.

Pete Baldwin 12/5/2012 | 5:37:49 PM
re: Sprint Chases $3B in Vendor Financing

Vendor financing in general just makes me queasy. It's not a sign of a healthy environment.

drman7 12/5/2012 | 5:37:46 PM
re: Sprint Chases $3B in Vendor Financing

Brings back memory when working with Lucent in USA back in 2000. Companies were financing a ton of optical gear e.g DWDM 400G Wavestar, etc from Lucent.

For that reason I was one of the many that got laid off from Lucent in 2003

This is bad. I am a CLWR investor and stayed away from S because of their huge debt, especially with Apple.

Don't see why S helps push CLWR for their TD-LTE rollout in which will help CLWR to gain more wholesale customers. Once S gets a piece of pie they can use that money for Vision. Not sure what is S vision, no pun intended. 

joset01 12/5/2012 | 5:37:27 PM
re: Sprint Chases $3B in Vendor Financing

I'm thinking we're making this too complex. Wouldn't the 3 vendors most likely be AlcaLu, Ericsson  and Samsung, i.e. Sprint's "Network Vision" vendors?

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