Sprint Looks to Raise $500 Million

Sprint Corp. (NYSE: S) is planning to raise $500 million in a public offering, the company said in a filing with the Securities and Exchange Commission Monday.

The third-largest U.S. carrier said the half-billion dollars would go toward general business expenses, which could include paying for acquisitions, debt services, network expansion, and more. The company will raise the funds by offering senior unsecured notes that will mature in August 2017, and a Sprint spokesperson declined to elaborate on the exact purpose of the funds.

Fitch Ratings assigned a "BB" rating to the 8-year notes, and the ratings agency said Sprint will have a tough time regaining its market share of postpaid subscribers due to the low churn rate of its competitors, and Sprint's competitive position. Sprint was the only major carrier to lose subscribers last quarter, and rivals T-Mobile, AT&T, and Verizon Wireless continue to add new customers at a substantial rate.

Get all the details at InformationWeek.

— Marin Perez, InformationWeek