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88615298
Premium
join:2004-07-28
West Tenness
reply to openbox9

Re: might stay but cost more

said by openbox9:

It's a tender offer. How else do you propose a company buy another?

Point is the article states Sprint is going to spend $5 bil on LTE expansion. So if none of this money is going to that were is this money going to come from?

openbox9
Premium
join:2004-01-26
Germany
kudos:2

The same place it was coming from before this deal. Also, as you mention, $8B is going to fix Sprint's messy balance sheet, which makes future debt discussions much more tenable.

said by Forbes.com :

The $8 billion cash infusion provides Sprint with a significant cushion as it undertakes its expensive 4G LTE network rollout and network modernization project. It will also reduce the company’s net debt (long-term debt, excluding operating leases, minus cash) to $6.5 billion from $14.5 billion. As a result, its net leverage – the ratio of net debt to EBITDA – would decline from about 3x to 1.3x. This could lead to credit rating upgrades, and as a result lower borrowing costs for the company.



88615298
Premium
join:2004-07-28
West Tenness

said by openbox9:

The same place it was coming from before this deal.

before this deal they were in debt up to their eyeballs.

openbox9
Premium
join:2004-01-26
Germany
kudos:2

And the $8B cash infusion alleviates that.