Sprint and SoftBank sign $2.2bn deal for asset sale and lease-back

The assets which mainly comprises of mobile towers will be sold to Network LeaseCo, an entity backed by Sprint’s parent shareholder SoftBank Group and other investors. 

“Sprint and SoftBank have worked together again to create a unique structure that provides Sprint with an attractive source of capital,” said Tarek Robbiati, CFO of Sprint. 

“This transaction is an important first step in addressing upcoming debt maturities and allows us to stay focussed on our corporate transformation, which involves growing topline revenues and aggressively taking costs out of the business to improve operating cash flows.” 

Network LeaseCo will acquire certain existing network assets and then lease them back to Sprint. The $2.2 billion of cash proceeds Sprint expects to receive from the deal is expected to be repaid in staggered payments through January 2018.

According to Sprint, the sold assets have a net book value of about $3 billion.