Andre Yoskowitz
26 Oct 2011 14:53
Sprint, following its 16th straight losing quarter, has said today that it may need up to $7 billion in capital going forward to pay for its upcoming network upgrade and new handsets, including the iPhone.
The company will refinance $4 billion of its current debt and look to secure $1-$3 billion in new financing from suppliers.
What is clear, however, is that company is in trouble. Sprint has $20 billion in outstanding debt, with 60 percent coming due before 2016. The company only has $4 billion in cash and liquid investments.
Additionally, the company's massive $20 billion bet on the iPhone has cost their credit rating, which is now B1, well below "investment grade" and barely above "junk."
For the quarter, the company lost $300 million, down from a $900 million loss year-over-year.