trending Market Intelligence /marketintelligence/en/news-insights/trending/OsJQMVsvSWNOexiD-7XqPw2 content esgSubNav
In This List

Sprint strikes another deal for sale, lease-back of certain leased devices

Video

S&P Capital IQ Pro | Powering Your Edge

Video

S&P Capital IQ Pro | Unrivaled Sector Coverage

S&P Capital IQ Pro | Powered by Expert Insights

Blog

Broadcast broker activities, H1'21


Sprint strikes another deal for sale, lease-back of certain leased devices

Sprint Corp.struck another agreementwith Mobile Leasing Solutions LLC for the sale and lease-back of certain leaseddevices, and inked an 18-month bridge financing facility arranged by MizuhoBank Ltd. for $2 billion of additional liquidity.

The deal, which is expected to help the U.S. carriermitigate the working capital impacts associated with leasing devices tocustomers, will provide Sprint with about $1.1 billion in cash proceeds, alongwith $186 million of contingent deferred consideration, on the sale of about$1.3 billion of leased device assets, the company said April 29.

Sprint expects to receive the proceeds in the coming weeks.The transaction was arranged by Mizuho Securities Co. Ltd.

The new sale lease-back arrangement will be accounted for asfinancing. Accordingly, the assets will remain in property, plant, andequipment and will continue to be depreciated over their remaining useful lives.

Formed by SoftBank and certain other equity investors, MLSgot debt financing from several lenders including leasing companies andinternational and domestic banks. Brightstar Corp is offering its leasemanagement and asset tracking system, along with logistics and deviceremarketing services.

Mobile Leasing Solutions executed a forward purchaseagreement with Foxconn in order to cut the downside risk of future changes indevice residual values.

These transactions, along with the one announced earlier inApril, have helped the company's liquidity position improve by more than $5billion in April, said the company.