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The Wall Street Journal: Sprint plans to mortgage airwaves to raise $3.5 billion

Sprint Corp. is preparing to mortgage a little more than 10% of its wireless airwaves to raise needed cash to fund its business, according to several people familiar with the matter.

This would be the third time Sprint S, +0.74% has used its assets as collateral to borrow money, a creative, if unusual, move in the wireless industry.

Sprint believes the chunk of airwaves is worth more than $14 billion, though it doesn’t plan to borrow the full amount initially, the people said. Instead, it will likely aim at first to raise about $3.5 billion, the people said, and the bonds are expected to be rated investment grade.

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