Sprint Gets $1Bn Loan, Considers Sale Of Phone-Directory Business

Communications Today, March 4, 2002

In a move to address investor fear about liquidity, Sprint [FON] on Friday said that it has secured a $1 billion loan and is considering the sale of its phone-directory business.

Sprint said it has signed a commitment letter with the Citibank division of Citigroup Inc. [C] and Germany's Deutsche Bank AG [DTBY] for the nine-month loan. The company said it will secure the loan through the assets of its directory publishing business, and that the loan amount is in addition to its existing $5 billion bank credit line.

Bob Olson, a network services analyst with InfoTech, a research unit of Communications Today publisher PBI Media, said Sprint's action is a good move.

"I think it is a prudent move by Sprint to avoid the commercial market at this time and to avoid drawing down on its bank loan," Olson said. He added that Sprint's phone directory business is a desirable asset and should bring a decent price. >TK