Cases & Deals

Sprint closes $6.5 billion private placement offering of Notes

Client(s) Sprint Corporation

Jones Day advised Sprint Corporation in connection with its $6.5 billion Rule 144A/Regulation S offering consisting of $2.25 billion aggregate principal amount of 7.250% Notes due 2021 and $4.25 billion aggregate principal amount of 7.875% Notes due 2023. This transaction marks the largest ever high yield debt offering by a company (Source: WSJ).

The offering represents the first financing transaction by Sprint since its acquisition of 100% of the outstanding stock of Clearwire Corporation and the acquisition by Softbank Corp. of a controlling equity interest in Sprint, each of which occurred in July 2013. The issuer, Sprint Corporation, is a newly formed holding company established to effect the Softbank transaction. The Notes are guaranteed on a senior unsecured basis by Sprint Corporation's wholly-owned subsidiary Sprint Communications, Inc. (formerly known as Sprint Nextel Corporation). J.P. Morgan and Deutsche Bank Securities acted as a joint book-running managers for the transaction.

Sprint is the third largest wireless communications company in the United States based on wireless revenue, one of the largest providers of wireline long distance services, and one of the largest internet carriers in the nation.