Sprint intends to use the net proceeds from the offering for general corporate purposes, which may include, among other things, redemptions or service requirements of outstanding debt, network expansion and modernization and potential funding of Clearwire Corporation and its subsidiary Clearwire Communications LLC.
To raise the cash the trusts have been forced to liquidate other bond holdings (they suffer the same penalities as individuals on Daewoo debt), driving down prices further and prompting more redemptions.
Sian believes Portugal will need 42 billion euros to cover its sovereign debt payments, 36.8 billion euros for its bank bond redemptions, and 10.5 billion euros to recapitalize its banks.