Bulletin: Sprint Corp. Ratings Are Unaffected By $2.5 Billion Add-On To Subsidiary's Senior Secured Term Loan B

NEW YORK (S&P Global Ratings) Jan. 30, 2017—S&P Global Ratings today said that its 'BB-' issue-level rating and '1' recovery rating on wireless service provider Sprint Corp.'s proposed senior secured term loan B due 2024 are unchanged after the company said that it plans to increase the size of the term loan by $2.5 billion to $4.0 billion. The '1' recovery rating indicates our expectation for very high (90%-100%) recovery in the event of payment default. The term loan, along with the proposed $2 billion revolving credit facility, will be issued by wholly-owned subsidiary Sprint Communications Inc. The company will use proceeds to bolster its liquidity position. The 'B' issue-level rating and '4' recovery rating on the company's existing senior

...NEW YORK (S&P Global Ratings) Jan. 30, 2017--S&P Global Ratings today said that its '##-' issue-level rating and '1' recovery rating on wireless service provider Sprint Corp.'s proposed senior secured term loan B due 2024 are unchanged after the company said that it plans to increase the size of the term loan by $2.5 billion to $4.0 billion. The '1' recovery rating indicates our expectation for very high (90%-100%) recovery in the event of payment default. The term loan, along with the proposed $2 billion revolving credit facility, will be issued by wholly-owned subsidiary Sprint Communications Inc. The company will use proceeds to bolster its liquidity position. The 'B' issue-level rating and '4' recovery rating on the company's existing senior unsecured debt and the 'B+' issue-level rating and '2' recovery rating on its senior unsecured debt with subsidiary guarantees are unaffected by the proposed financing since the additional secured debt reduces the incremental debt assumption that...

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