Sprint Corp. (NYSE: S) CEO Marcelo Claure said in September that the operator would go ahead with the "Spectrum LeaseCo" deal "as soon as possible." Sprint already has similar handset and network equipment lease operations in place. The idea is that it is cheaper to finance the company using these operations rather than going cap-in-hand to the debt markets. (See Sprint CEO: We'll Lease Spectrum as Soon as Possible, Sprint Inks $1.2B Deal for Sale & Lease-Back of Devices and Sprint Setting Up New Entity to Fund Network.)
Sprint reckons that the bandwidth portfolio, which includes 2.5GHz and 1900MHz licenses, are worth about $16.4 billion in total. Sprint says that the sell and lease-back program is structured as a $7 billion program, "pursuant to initial and future issuances."
The notes issued as part of this deal are expected to be rated investment grade by both Moody's and Fitch, Sprint says. The initial issue is expected to be closed in early November.
— Dan Jones, Mobile Editor, Light Reading