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Sprint Corporation -- Moody's says Sprint's term loan add-on does not impact its ratings

Moody's Investors Service (Moody's) said that the B2 corporate family rating (CFR) of Sprint Corporation (Sprint) and the Ba2 senior secured rating of Sprint Communications, Inc. are unchanged following its anticipated $400 million add-on to its existing $1.1 billion senior secured term loan B1 maturing in February 2024. Sprint's ratings are on review for upgrade based on Moody's assessment that the proposed combination with T-Mobile US, Inc. would materially improve Sprint's standalone credit profile. On a pro forma combined basis, Sprint would benefit from reduced operating and capital investment costs, lower leverage approaching the low 4x (Moody's adjusted) range two years from likely close, improved liquidity, greater operating scale, a more extensive asset base and improved market positioning in the US wireless industry.