Sprint to Raise $2 Billion Debt, May Use to Fund Clearwire

Sprint Nextel, the third- largest U.S. wireless operator, said it plans to sell $2 billion in notes to help pay for refinancing, network upgrades and possible funding for its wireless partner Clearwire.

Sprint will sell notes due in 2017 and 2020 through a private placement. The five-year notes may yield about 9.25 percent and the eight-year debt, which will be guaranteed by Sprint units, may yield 7 percent to 7.125 percent. Sprint raised $4 billion through a debt offering in November to help with network spending and financing for Clearwire. The return trip to capital markets shows Sprint is raising cash to cover the growing costs of upgrading its wireless network to higher-speed technology and selling mobile devices that require subsidies, such as Apple’s iPhone.