Sprint Corporation (S) gets accounts-receivable credit line up to $1.3 billion

Posted May 18, 2014

Sprint Corporation (NYSE:S) has received a credit line of as much as $1.3 billion backed by Sprint’s accounts receivable, which provides a new source of funding as the company spends to improve its network.

The agreement was made with Bank of Tokyo-Mitsubishi UFJ Ltd. Sprint’s receivables from wireless service accounts will be sold on a revolving basis over the next two years.

This credit line gives Sprint more flexibility as it expands its Long Term Evolution network. Sprint had $2.4 billion in undrawn borrowing capacity from a credit line at the end of last quarter.