Sprint raising debt, may fund ailing Clearwire

Sprint may be poised to rescue 4G wholesale partner Clearwire. The third-place carrier said it was planning to offer debt in the form of 7- and 10-year notes that it will use for general purposes including potentially funding 4G provider Clearwire.

If it follows through, Sprint could potentially bridge much of Clearwire’s funding needs. Clearwire said this week it needs $1 billion to continue operations and launch an LTE network. Sprint has not said how much it is raising through the notes, which are due in 2018 and 2021, and there’s no firm promise that it will use the money toward Clearwire. But the news nonetheless provided a boost to Clearwire, which saw its stock rise more than 20 percent following the announcement. The news is another sign that Sprint may be moving closer to Clearwire, which it owns a majority stake in.