Sprint to get $1.1B cash infusion through financing deal with SoftBank-backed entity
On Friday, US wireless carrier Sprint Corp. said that it is getting $1.1 billion cash infusion from a newly-formed company -- called Mobile Leasing Solutions LLC -- which is backed by Sprint’s Japan-based majority owner SoftBank Group Corp.
According to the announcement, Sprint -- which has been losing subscribers as well as money over the last few years -- will get $1.1 billion in cash from Mobile Leasing Solutions through a sale and lease-back deal.
Under the terms of the financing deal, Sprint will sell, to Mobile Leasing Solutions, certain handsets and other devices which the carrier has leased to its customers. The devices will then be rented back to Sprint by Mobile Leasing Solutions.
As a result of the deal, Sprint will sell a total of 2.5 million device leases to Mobile Leasing Solutions.
The sale and lease-back deal which Sprint has struck with Mobile Leasing Solutions will enable the carrier to reduce costs resulting from its move to transition to new financing plans for handsets which allow monthly payments from traditional two-year contracts. The new plans have led to a cash burn for Sprint as the carrier has to pay upfront for the devices purchase from phone makers, but the money coming in to the carrier from customers’ phone payments gets delayed.
The overall ‘asthma epidemic’ among children has...Read More
People in huge numbers gathered in the Mount Lofty...Read More
As New Year is approaching, people have already...Read More
Alzheimer’s disease, the commonest cause of...Read More
Cases of opioid abuse have been increasing and...Read More
In an announcement made on December 22, cable giant...Read More