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Sprint to pay down $1.5 billion of debt due 2013, 2015

Posted: , by Alan F.

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Sprint to pay down $1.5 billion of debt due 2013, 2015
Last month, we told you that Sprint's large mountain of debt could hinder plans it has to finish building out its nationwide LTE network. But the nation's third largest carrier informed us today that it plans on paying down some of its debt with maturities in 2013 and 2015. This should help the company become more flexible when it comes to putting up those LTE towers like the one that was recently erected in Homestead, Florida.

Sprint LTE cell tower

Sprint LTE cell tower

A total of $1.5 billion of Notes will be retired including debt maturing in 2013 that will be valued at $472.9 million on August 24, 2012. The precise securities being retired are the Nextel Corp. 6.875% Notes due 2013. In addition, debt maturing in 2015 with a value of $1 billion as of August 24th will also be retired. Those securities are the Nextel Corp 7.375% Notes due 2015. Holders of both Notes involved in the debt buyback will receive par (100% of face value) plus any unpaid and accrued interest.

After retiring these Notes, the remaining principal balance remaining of the 2015 Notes will be $1.1 billion.

source: Sprint
+- Press Release

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posted on 14 Aug 2012, 21:58 7

1. XPERIA-KNIGHT (unregistered)

Here's to hoping they get it straight..... :)

posted on 14 Aug 2012, 22:03 2

2. CommentBoxEnforcer (Posts: 99; Member since: 13 Feb 2012)

Dont they owe apple also? Sprint gonna f**k around and become broke

posted on 15 Aug 2012, 14:24

7. Sprintfan (Posts: 68; Member since: 18 Nov 2011)

"Sprint has sold 4.5 million iphones since they signed the contract with Apple last October". With 1.5 million iphones sold per quarter Sprint is on pace to to make this investment a + rather than a -. With the iPhone 5 possibly coming soon, you think Sprint is going to sell less Iphones?

posted on 14 Aug 2012, 22:08 2

3. 305Bucko (Posts: 506; Member since: 07 Aug 2011)

Sprint stocks is almost at $5 a share too btw. Was at $2.50 last year. I think theyre finally getting over that WiMax fail.

awhh WiMax... smh... in 10 years we'll be looking back like "remember wimax LOL" (most people wont)

posted on 14 Aug 2012, 22:08 6

4. Allen3697 (Posts: 86; Member since: 26 Mar 2012)

Sprint has great financial plans for the next 10 years. It'll all work out.

posted on 15 Aug 2012, 11:18 1

5. archangel9 (Posts: 233; Member since: 07 Feb 2010)

Hesse knows what he doing.I was there when the LTE tower went up in Homestead being from Miami.They taking it one step at a time.

posted on 15 Aug 2012, 14:07

6. Sprintfan (Posts: 68; Member since: 18 Nov 2011)

Stock is up 8% today.

posted on 15 Aug 2012, 16:08

8. theBankRobber (Posts: 682; Member since: 22 Sep 2011)

I will be switching from Sprint next year, me and 5 of my friends at my job have Sprint and we barely get a signal for the past 2 months. Called Sprint 3 times and they fix it then it goes out again. I use my phone most work and im on wifi when I get home so I could care less about unlimited data if can't even access the damn internet. Sad cause I been with Sprint for almost 10 years :(

posted on 15 Aug 2012, 18:44 1

9. 305Bucko (Posts: 506; Member since: 07 Aug 2011)

If you only knew all the stuff going on behind the curtains. Lets just say: Theres a reason signal has dropped in the past 3 months BUT Theres a reason Sprint's stocks have doubled in the past 3 months.

Your signal will be bad for a while but its temporary, and well worth it.

posted on 15 Aug 2012, 21:29 1

10. lsutigers (Posts: 821; Member since: 08 Mar 2009)

As 305Bucko mentioned, Sprint is re-building all of their networks from the ground up. Some markets have already been upgraded, others will be upgraded in the coming months to faster 3G, LTE, HD Voice and eventually VoLTE. Sprint is future-proofing their network, something other carriers will have to do eventually and dont have the spectrum capacity Sprint / Clearwire has. This time next year they will have one of the strongest, fastest, highest capacity nationwide networks.

As far as the article, this is good news for Sprint, paying down debt early, they are adding new customers, the iPhone is selling well, a strong Android portfolio and Network Vision is the last missing piece of the puzzle. Now is the time to buy Sprint stock.

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