Sprint (S) Stock Declines, Cuts Annual Outlook, to Raise $1.1 Billion in Financing Deal
NEW YORK (TheStreet) -- Sprint Corp. (S) - Get Report shares are taking a hit, down 5.93% to $3.81 on heavy trading volume, after the communications company said it would raise about $1.1 billion in cash from a financing deal and cut its annual outlook.
As part of the transaction, Sprint would be selling and leasing back customer leases, which the company said would be cheaper than getting capital through the debt markets, according to the Wall Street Journal.
Based on the deal and taking transformation program costs into consideration, the company was forced to drop its annual forecast for adjusted earnings before interest, depreciation, taxes and amortization, Reuters reports.
It now expects full-year EBITDA to be between the range of $6.8 billion to $7.1 billion, down from its previous range of $7.2 billion and $7.6 billion.
The deal is expected to close in the first week of December.