Sprint has upped its liquidity by over USD 3 billion after signing a new deal with Mobile Leasing Solutions (MLS) for the sale and lease-back of certain leased devices. Arranged by Mizuho Securities, the transaction is expected to provide the company with about USD 1.1 billion in cash proceeds.
Sprint has also signed an 18-month bridge financing facility arranged by Mizuho Bank, providing USD 2 billion of additional liquidity. These transactions, in addition to the USD 2.2 billion of network-related financing that was announced earlier this month, improved the company’s liquidity position by more than USD 5 billion in April.
MLS was formed by a group of equity investors including SoftBank. As with the first transaction, Brightstar is providing its lease management and asset tracking system, as well as reverse logistics and device remarketing services. Also consistent with the first transaction, MLS executed a forward purchase agreement with Foxconn, which helps reduce the downside risk of future changes in device residual values.
The 18-month bridge financing facility will provide Sprint with USD 2 billion of liquidity as the company continues to execute its turnaround initiatives, densify and optimize its network, and progress towards other financing transactions in the future. Under the terms of the bridge, the company will be able to add up to USD 500 million in additional commitments.
Sprint will be reporting results for its fiscal full year on 3 May.
