Sprint Has Proposals From Banks on Financing Bid for T-Mobile

Sprint is continuing to take steps to acquire T-Mobile. The Wall Street Journal reported, “Sprint Corp. has received proposals from at least two banks on how it could finance a takeover of smaller rival T-Mobile US Inc., giving it confidence that a deal could be funded, people familiar with the matter said. Terms of any bid have yet to be firmed up, one of the people said. But the proposals envision a total “enterprise value” of about $50 billion for the deal, which would involve paying around $31 billion for T-Mobile and providing for a possible refinancing of roughly $20 billion in existing T-Mobile debt, the people said. T-Mobile has a market value of about $26 billion as its shares have risen on reports of the possible tie-up. Having funds at the ready to cover T-Mobile’s existing debt would be necessary because debt holders could cash in their bonds if the company changes ownership.”