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Thread: Sprint Announces Pricing of $1.0 Billion Guaranteed Notes Offering

  1. #1
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    Sprint Announces Pricing of $1.0 Billion Guaranteed Notes Offering

    https://finance.yahoo.com/news/sprin...220000643.html

    OVERLAND PARK, Kan., Jan. 30, 2020 /PRNewswire/ -- Sprint Corporation (NYSE:S) announced today that it has priced its previously announced offering of $1.0 billion aggregate principal amount of 7.250% guaranteed notes due 2028. The notes will be guaranteed on a senior basis by Sprint Communications Inc., which guarantee will in turn be guaranteed on a senior subordinated basis by each of the company's wholly-owned subsidiaries that guarantees its existing credit agreement. The sale of the notes is expected to close on February 3, 2020, subject to customary closing conditions.

    Sprint intends to use the net proceeds from the offering to refinance debt.

    This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
    The notes and the related guarantees will be offered only to persons reasonably believed to be qualified institutional buyers in reliance on the exemption from registration set forth in Rule 144A under the Securities Act of 1933, as amended (the "Act") and outside the United States, to non-U.S. persons in reliance on the exemption from registration set forth in Regulation S under the Act. The notes and the related guarantees have not been and will not be registered under the Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.

    About Sprint
    Sprint (NYSE: S) is a communications services company that creates more and better ways to connect its customers to the things they care about most. Sprint served 54.2 million connections as of December 31, 2019 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; leading no-contract brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. Today, Sprint's legacy of innovation and service continues with an increased investment to dramatically improve coverage, reliability, and speed across its nationwide network and commitment to launching a 5G mobile network in the U.S.

    Cautionary Note Regarding Forward-Looking Statements:
    This news release includes "forward-looking statements" within the meaning of the securities laws. The statements in this news release regarding Sprint Corporation's current expectations and beliefs as to the consummation of the offering of notes and uses of proceeds thereof, as well as other statements that are not historical facts, are forward-looking statements. Forward-looking statements are estimates and projections reflecting management's judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. All information set forth in this release is as of January 30, 2020. Sprint Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ from our company's historical experience and our present expectations or projections. Factors that might cause such differences include, but are not limited to, those discussed in Sprint Corporation's Annual Report on Form 10-K for the fiscal year ended March 31, 2019 and our Quarterly Report on Form 10-Q for the period ended December 31, 2019


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  2. #2
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    This is weird considering Sprint has been living on lots of "junk" financing for some time.

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    Quote Originally Posted by loboheeler View Post
    This is weird considering Sprint has been living on lots of "junk" financing for some time.
    Not weird at all. Sprint is one of the largest junk bond issuers out there. It's more of the same. 7% is junk level interest. High quality corporate bonds are going for about 2%.

    I won't pretend to know exactly what this statement means:

    "The notes will be guaranteed on a senior basis by Sprint Communications Inc., which guarantee will in turn be guaranteed on a senior subordinated basis by each of the company's wholly-owned subsidiaries that guarantees its existing credit agreement."

    Seems to me that the bonds are guaranteed by Sprint and are as good as the credit worthiness of Sprint. Which is to say, not real good.

    IIRC, they have previously issued junk bonds coming due in March. It appears that they want to pay off the previous junk bonds with the proceeds of new junk bonds to kick the can down the road.

    Looks like another desperation move as they circle the drain on the way down.

    They have only had one (not very) profitable year since 2006.

    I wish them well and hope they can turn things around, but it doesn't seem likely.

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    They're in trouble sans the merger and this below isn't the best news for a company about to go back into the credit market.

    https://finance.yahoo.com/news/sprin...165513236.html

    The cost to protect Sprint’s debt against default for five years has nearly doubled since September to around 333 basis points

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    Quote Originally Posted by bobdevnul View Post
    I wish them well and hope they can turn things around, but it doesn't seem likely.
    What about the fate of customers if Sprint is left on it's own after a merger failure? There has been speculation they might start selling off assets and shrink to fewer markets. How many are locked into the Sprint system by contracts and locked phones? Are Sprint branded phones even usable with a carrier like Verizon? There have been problems with that in the past.

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    Quote Originally Posted by loboheeler View Post
    What about the fate of customers if Sprint is left on it's own after a merger failure? There has been speculation they might start selling off assets and shrink to fewer markets. How many are locked into the Sprint system by contracts and locked phones? Are Sprint branded phones even usable with a carrier like Verizon? There have been problems with that in the past.
    I would not consider Sprint shrinking to fewer markets leaving people with contracts, device payment plans, and phones incompatible with other carriers to be turning things around. I was hoping they would become profitable and expand. That is highly unlikely.

    I personally would prefer that the T-Mo deal be approved and make productive use of Sprint's assets as a true, competitive, national network.

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    Quote Originally Posted by bobdevnul View Post
    I personally would prefer that the T-Mo deal be approved and make productive use of Sprint's assets as a true, competitive, national network.
    Agree that the merger should go through for the overall welfare of the mobile industry. Anything to force the dinosaur brained Verizon and AT&T to be competitive, otherwise they will be the monopoly "Ma Bell" was back in the day. Sprint itself will get torn apart either way.

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    And really, if it does not go through.. who's to say Sprint just does not sell it's 2.5GHz spectrum to T-Mobile anyway while pulling out of markets? Kind of like what Sprint originally did with Clear WiMax after buying Nextel.

    I'm more than willing to bet that the current administration would not stop that at all.
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  9. #9
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    There is no merger agreement! It would have to be re-negotiated if the merger is approved by the federal court.

    https://www.bloomberg.com/news/artic...takeover-price

    Late breaking news:
    There is a preliminary announcement in the New York Times and Wall Street Journal of the Sprint/T-Mobile merger being approved by the Federal court. Official announcement on Tuesday. There is mention of some conditions by the court, but no details yet.
    Last edited by loboheeler; 02-10-2020 at 09:45 PM.

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