Sprint has inked another unusual financial deal that will net it $2.2 billion from network assets as it attempts to turn its finances around.
Sprint Corp. (NYSE: S) is selling $3 billion of network gear to "several bankruptcy remote entities," which will use the equipment as collateral to raise $2.2 billion for Sprint and then lease the gear back to the carrier. Sprint's owner, SoftBank Corp. , is among the companies providing funds for the transaction. A bankruptcy remote entity is supposed to wall off certain assets from being treated as part of a bankrupt company.
"Sprint and SoftBank have worked together again to create a unique structure that provides Sprint with an attractive source of capital," said Sprint CFO Tarek Robbiati, in a statement.
The CFO had said that a network deal was coming in January. Back then, he said that it would net Sprint between $3 billion and $5 billion in fiscal 2016. (See Sprint Setting Up New Entity to Fund Network.)
Light Reading has asked Sprint for details of what equipment it is selling and will update the story if further information is forthcoming.
The operator hasn't ruled out selling spectrum to raise more money.
Sprint says it had total liquidity of $6 billion at the end of 2015, with an additional $600 million available under vendor financing agreements that can be used toward the purchase of 2.5GHz network equipment.
— Dan Jones, Mobile Editor, Light Reading