Sprint expects to complete the sale on March 1 as it tees up an offer of $1 billion of notes due in 2017, and another $1 billion of guaranteed notes due in 2020.
Why this matters
This sale comes a couple of months after some analysts suggested that Sprint will need to raise about $3 billion more to complete its LTE and 3G Network Vision upgrades. It also shows that Sprint is warming to the idea of also helping out Clearwire as its partner blazes its own LTE upgrade path. Clearwire's LTE plans got a much-needed boost last year when the company secured an additional $715.5 million via stock sales.
Sprint's new debt strategy is emerging amid rumors that the company scotched a plan to acquire MetroPCS Inc. (NYSE: PCS), because the board balked at its potential price tag of $8 billion in stock and cash, according to Bloomberg. (See Sprint Board Nixed MetroPCS Deal.)
Catch up on the Sprint and Clearwire saga.
- Sprint Needs $3B to Fufill Its 'Network Vision'
- Clearwire Ups Offering to $350M
- Clearwire's LTE Clues
- Sprint Keeps Clearwire (& Unlimited) Alive
- Clearwire Close to $200M in Vendor Financing
- Clearwire Gets Its Funding: $715.5M
— Jeff Baumgartner, Site Editor, Light Reading Cable