Sprint Bond Sale Brushes Bank Lenders Aside
Bloomberg reported that Sprint’s willingness to sacrifice its borrowing capacity, including a $3 billion unsecured revolving credit line arranged by Citigroup and
JPMorgan Chase, underscores the security provided by Softbank, the wireless carrier’s new majority owner.
Bloomberg said, according to a regulatory filing, Sprint’s $6.5 billion bond sale on September 4 was enough to violate the terms of its loans “by a significant level” at
the end of the month.
Bloomberg notes that while Sprint is in talks with lenders to amend the leverage covenant, the company also said it has the money to pay off its loans and cancel $4.5
billion of credit facilities if it fails to reach an agreement.
To read the entire Bloomberg story, click here.