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Sprint Chases $3B in Vendor Financing

Dan Jones
LR Mobile News Analysis
Dan Jones, Mobile Editor
3/28/2012

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.

For more



— Dan Jones, Site Editor, Light Reading Mobile

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jggveth
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
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
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
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
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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