KANSAS CITY, Mo.—While announcing a series of steps designed to increase the company’s financial flexibility and address the market’s current concerns about its liquidity, Sprint Corp. said it was expanding its existing accounts receivable financing program to include Sprint PCS receivables. The company said the program expansion will be in excess of $500 million and available in the next 60 days.
Sprint reported Sprint PCS’ financial needs for 2002 to be $300 million below previous guidance due to the “high likelihood of either a significant delay or termination of the availability of the NextWave spectrum.” The company also noted debt levels should peak in 2002 with the launch of Sprint PCS’ cdma2000 1x network and start declining beginning next year.
As a result of reduced capital expenditures, Sprint PCS is expected to be free cash flow positive for the full year 2003.
