Fibertower Corp fka FBBT

[condoe3]

Sprint shares worth $21 each in spectrum value alone: Wells Fargo


Shares of Sprint are worth $21 each in spectrum value alone based on the carrier’s recent spectrum-leaseback deal, Wells Fargo Securities said this morning.

The nation’s fourth-largest mobile network operator announced this week that it will place 14 percent of its spectrum into three vehicles that will then lease the airwaves back to Sprint under a long-term agreement. The carrier said the spectrum has been estimated by a third party to have a value of $16.4 billion, and Sprint will initially look to raise $3.5 billion but could raise as much as $7 billion under the structure.

The move essentially enables the carrier to use its airwaves as collateral, increasing its liquidity to help meet debt obligations over the next 18 months.

Several analysts were quick to note the high valuation of Sprint’s spectrum, and BTIG Research observed that the deal appears to value Clearwire airwaves at six times the price Sprint paid to acquire Clearwire in 2015. Jennifer Fritzsche of Wells Fargo said the announcement finally provides a “market value” on Sprint’s spectrum.