Sprint Nextel Corp. is offering a dollar to its bondholders to alter their bond agreement to let Tokyo-based SoftBank Corp. buy control of the wireless phone company.
The payment would be made on each $1,000 of Sprint debt the bondholder owns. It covers various bonds due in 2017 through 2020.
Without the changes in the bond agreement, Sprint would be required to buy back the bonds if there was a change in control of the company. Sprint also would have to pay 101 percent of the bonds’ face value plus any unpaid interest that had accrued.
The new agreement, if enough bondholders accept, would count SoftBank and its affiliates as an exception to the change-of-control rule.
SoftBank has agreed to buy 70 percent of Sprint for $20.1 billion.
Mark Davis, firstname.lastname@example.org