Sprint improves liquidity by $3.1B through two deals

Sprint announced two new funding deals aimed at providing an additional $3.1 billion in liquidity as the company continues to try to make ends meet this year.

The nation's fourth-largest operator unveiled a second sale and lease-back arrangement with Mobile Leasing Solutions that will give Sprint $1.1 billion in proceeds in exchange for devices worth $1.3 billion. And it announced an 18-month bridge loan that will provide $2 billion "for network investment and turnaround initiatives."

Sprint continues to employ creative accounting as it faces serious financial challenges. It received $1.1 billion late last year in its first deal with a handset leasing company established by its parent SoftBank and other investors, and it recently raised $2.2 billion by essentially using its network equipment as collateral in a deal with another company SoftBank helped create. And it could do a similar deal by using its airwaves to secure a loan or line of credit. Press release

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