Sprint's Owner Plans to Buy Telecom Out of High-Yield Debt

Sprint's (S) stock has been under pressure but received a lift after Softbank (SFTBF) announced a share buyback, pledging to use the cash to help Sprint pay off its debt. Softbank bought a controlling position in Sprint in 2013, but has watched its investment in that 'Stressed Out' stock deteriorate. Real Money writer James Passeri said the maneuver appears to be a last resort after about 23% of Softbank's market cap dissolved over the past twelve months. But Softbank CEO Masayoshi Son has said he thinks there will be adequate liquidity reserves to service the debt. Real Money has reported that Sprint is tied up in high-yield debt and has been burning through cash.