Sprint Taps $1.1 Billion More From SoftBank Phone Financing Armby
Mizuho Bank will provide $2 billion in 18-month financing
Company says it added $5 billion to its balance sheet in April
Sprint Corp. raised more than $3 billion through equipment sales and loans, bringing the money-losing carrier’s new funding to $5 billion this month.
The company arranged its second tranche of phone financing, selling $1.3 billion of handsets for $1.1 billion through a sale and lease-back led by parent SoftBank Group Corp., according to a statement Friday. Sprint also entered into an 18-month bridge financing deal with Mizuho Bank Ltd. for $2 billion.
The funds buy Sprint time as the company tries to end seven straight years of losses. The fourth-largest U.S. wireless carrier has to make $2.3 billion in debt payments this year. It’s also working to cut $2.5 billion in costs and add subscribers through half-off promotions and network improvements that are key to turning the business around.
Sprint fell 4.2 percent to $3.43 at 11:12 a.m. in New York, reversing earlier gains of as much as 4.1 percent. The shares had lost 1.1 percent this year as of Thursday’s close.