Sprint announced today a deal involving a combination of “several bankruptcy remote entities” going by the collective name of Network LeaseCo to raise $2.2 billion in capital funding. Once the transaction is completed, Sprint will have access to $2.2 billion in capital to help with their balance sheet liquidity to be repaid in several staggered, unequal payments to be completed by January 2018.
According to Sprint CFO Tarek Robbiati, the move is being undertaken so Sprint can address some “upcoming debt maturities” as well as play a role in the carrier’s efforts to improve its overall financial position. According to the terms, Network LeaseCo will acquire cell tower assets from Sprint and then lease them back to Sprint. Meanwhile, Network LeaseCo will use the assets as collateral to borrow funds from external investors, including SoftBank.
At the end of 2015, Sprint had $6 billion in available liquidity and access to another $600 million in vendor financing agreements. Sprint’s plans include a move to deploy new microwave technology and replace the Verizon and AT&T backhauls they currently use. The company is also trying to cut $2 billion from annual operating costs. Along with this latest move with Network LeaseCo, Sprint performed a similar transaction last fall involving handsets and a company called Mobile Leasing Solutions.
source: Sprint
via: Fierce Wireless
Come comment on this article: Sprint raises $2.2 billion in cell tower leaseback deal
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SOURCE- talkandroid
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