Some of that will be used to pay debt....the rest is to possibly purchase the rest of the 52% of CLWR...Sprint still has 1.5 billion from before, no? What is the possible buy out price considering those numbers?
What makes you think they will pay the debt off and just not get a low interest SC refinance?
If Sprint could have bought Clearwire for any $3 to $4B, don't you think they would have before now? Sprint has had more cash than that for some time. Likely cash and share deal with the SB deal supporting Sprints share price.
Also regarding to CNBC's report on "The $3 billion in proceeds from the sale of the convertible bond to Softbank will be used to help Sprint with certain debt maturities it has coming up and in its continued effortto acquire control of Clearwire.".
I see only 50Million S bond coming to mature in 2013/8. And next one is in 2016. So not too much bond. 3B should just totally be thrown into the CLWR deal.
plus, they can use some of their cash to buy out CLWR. They were going to spend 8 billion on PCS before so they can try to pony up another 3 billion and take them out for 6 billion and they can keep the softbank deal alive to ensure the cash infusion for their buildout.