|By Business Wire||
|November 8, 2012 05:01 PM EST||
Fitch Ratings has assigned a 'B+/RR4' rating to Sprint Nextel Corporation's (Sprint Nextel) benchmark-sized offering of senior unsecured notes due 2022. The proceeds from the offering are expected to be used for redemption of outstanding debt. All of Sprint Nextel's ratings remain on Rating Watch Positive. As of Sept. 30, 2012 Sprint Nextel had approximately $21.3 billion of debt outstanding.
The issuance is in line with the company's strategy to opportunistically refinance looming scheduled debt maturities. In Fitch's view, Sprint has strengthened its liquidity position and reduced medium-term refinancing risks. However the company's scheduled maturities total approximately $3.3 billion during the next three years. Maturities include approximately $300 million in 2013, $1.4 billion in 2014, and $1.6 billion in 2015.
Sprint Nextel's liquidity position is supported by $6.3 billion of cash and $1.2 billion borrowing capacity under its revolving credit agreement which is set to expire during October 2013. In addition, approximately $423 million is available through May 31, 2103 under the first tranche of the secured equipment credit facility. The $8 billion cash investment by Softbank Corp. affords Sprint Nextel considerable financial flexibility to address refinancing requirement and strategic investments.
Sprint Nextel will also likely need to consider parameters for a new facility by the end of 2012 or early 2013, given the October 2013 maturity. Sprint was also considering parameters for $2 billion in additional vendor financing with its equipment suppliers. Given this new cash injection, additional uncertainty exists whether Sprint Nextel would still raise additional financing by this means. The current liquidity (absent the Softbank cash infusion) addressed Sprint Nextel's material cash requirements expected through at least 2013, which could be in excess of $5 billion due primarily to the network modernization project and iPhone rollout.
The Rating Watch Positive reflects Fitch's belief that the strategic agreement Sprint Nextel entered with Softbank Corp. including the $8 billion cash infusion strengthens Sprint Nextel's financial and operating profile longer term. With $8 billion in added funding, Fitch believes Sprint Nextel could advance or accelerate certain strategic initiatives to improve their longer-term competitive position. Additional spectrum for Sprint Nextel's 4G network, other consolidation opportunities, and accelerating LTE build-outside of current plans could likely be a high priority.
Resolution of the Rating Watch depends upon several factors. These factors would include fully assessing the degree of linkage in the relationship between Softbank and Sprint Nextel for legal ties, operational ties and strategic ties. Fitch would access Sprint Nextel execution on stated objectives and whether the company demonstrated further operational and financial improvements as expected. Any planned uses of the cash infusion would also be reviewed.
The majority of debt at Sprint Nextel has change of control provisions. The change of control is triggered in the event when more than 50% of the voting power of the company changes and a downgrade occurs to the debt ratings. The debt at Nextel and Sprint Capital Corp. does not have change of control provisions.
On Oct. 15, 2012, Sprint Nextel and Softbank reached a series of definitive agreements under which Softbank will invest $20.1 billion, consisting of $12.1 billion to be distributed to Sprint Nextel stockholders and $8 billion to Sprint Nextel. As part of Softbank's cash contribution, Sprint Nextel issued a seven-year, convertible bond with a face amount of $3.1 billion to Softbank. Immediately prior to the merger assuming regulatory and shareholder approval, the bond will be converted into shares of Sprint. Closing of the transaction is anticipated mid-2013.
WHAT COULD TRIGGER A RATING ACTION
Negative: The ratings are on Rating Watch Positive. As a result, Fitch does not currently anticipate developments with a material likelihood, individually or collectively, leading to a rating downgrade.
Positive: The ratings are on Rating Watch Positive. Future developments that may, individually or collectively lead to positive rating action include:
--Expected completion of merger with the $8 billion cash injection
--The degree of operational, strategic, and legal linkage between Softbank and Sprint;
--Trends associated with operating performance for postpaid subscribers, churn, and ARPU;
--Sprint Nextel's continued progress with network modernization plans including cost improvements and LTE network deployment.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
In addition to the sources of information identified in Fitch's Revenue-Supported Rating Criteria and U.S. Public Power Rating Criteria, this action was informed by information from CreditScope.
Applicable Criteria and Related Research:
--'Revenue-Supported Rating Criteria', June 12, 2012;
--'U.S. Public Power Rating Criteria', Jan. 11, 2012.
Applicable Criteria and Related Research:
Revenue-Supported Rating Criteria
U.S. Public Power Rating Criteria
Rating Telecom Companies
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet and...
Feb. 26, 2017 03:45 AM EST Reads: 8,490
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Feb. 26, 2017 03:15 AM EST Reads: 2,012
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Feb. 26, 2017 03:00 AM EST Reads: 2,752
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Feb. 26, 2017 02:30 AM EST Reads: 13,719
Feb. 26, 2017 02:00 AM EST Reads: 4,775
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Feb. 25, 2017 10:30 PM EST Reads: 1,869
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
Feb. 25, 2017 09:00 PM EST Reads: 9,131
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Feb. 25, 2017 08:00 PM EST Reads: 13,567
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Feb. 25, 2017 08:00 PM EST Reads: 1,918
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Feb. 25, 2017 07:30 PM EST Reads: 1,827
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Feb. 25, 2017 07:00 PM EST Reads: 8,843
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
Feb. 25, 2017 07:00 PM EST Reads: 1,717
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
Feb. 25, 2017 06:45 PM EST Reads: 1,948
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
Feb. 25, 2017 06:30 PM EST Reads: 2,195
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
Feb. 25, 2017 06:00 PM EST Reads: 7,702
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
Feb. 25, 2017 05:45 PM EST Reads: 2,228
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
Feb. 25, 2017 05:00 PM EST Reads: 1,537
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Feb. 25, 2017 05:00 PM EST Reads: 2,946
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Feb. 25, 2017 04:45 PM EST Reads: 1,746
In his session at @ThingsExpo, Sudarshan Krishnamurthi, a Senior Manager, Business Strategy, at Cisco Systems, will discuss how IT and operational technology (OT) work together, as opposed to being in separate siloes as once was traditional. Attendees will learn how to fully leverage the power of IoT in their organization by bringing the two sides together and bridging the communication gap. He will also look at what good leadership must entail in order to accomplish this, and how IT managers ca...
Feb. 25, 2017 04:15 PM EST Reads: 1,834