NEW YORK-Sprint Spectrum L.P. and its wholly owned subsidiary, Sprint Spectrum Finance Corp., sold a $523 million note issue Tuesday, the same day the Federal Reserve Board said it wouldn’t raise short-term interest rates for now. The personal communications services provider originally intended to sell $650 million in notes a week earlier, but delayed and downsized the issue due to weak investor demand.
Prior to Tuesday’s sale, Sprint Corp., a 40 percent owner of Sprint Spectrum, agreed to purchase $100 million of the public debt issue.
The offering was in two parts: $250 million in 10-year senior notes priced at par, or face value, to yield 11 percent; $274.4 million in 10-year senior discount notes priced at 54.7 percent of par to yield 12.5 percent.
