Sprint reportedly secures bank funding. Does this mean a T-Mobile bid?
Despite criticism from the FCC, it seems Sprint may be pushing ahead with a possible T-Mobile merger.
It appears that Sprint continues to lay the groundwork for its reported upcoming bid to buy T-Mobile US. According to Bloomberg, Sprint is said to have secured funding for debt arrangements with six banks.
Two of Sprint's executives, Chief Financial Officer Joe Euteneuer and Treasurer Greg Block, reportedly met with the banks to ensure financing structures and to discuss how much Sprint would need to borrow if it ultimately decides to bid on T-Mobile.
According to Bloomberg, T-Mobile's market value is roughly $24 billion and the company has $8.7 billion in net debt, which Sprint would presumably have to assume.
Sprint has yet to make an official merger offer to T-Mobile, but speculation abounds that the company will float such an idea within the next couple of months. Sprint and T-Mobile have both argued that a merger would create a larger No. 3 carrier that could more effectively compete against AT&T and Verizon Wireless.
However, several lawmakers and regulators, including the Federal Communications Commission, have indicated that any overtures on Sprint's part may be met with heavy criticism and could eventually end in a merger denial.
This isn't the first time T-Mobile has been involved in outcry over a possible wireless merger. AT&T offered to acquire T-Mobile in 2011, only to have the deal turned back by regulators.
According to Bloomberg, the banks that Sprint is said to have met with are Goldman Sachs, Citigroup, JPMorgan Chase, Mizuho Financial Group, Bank of America, and Deutsche Bank.
When contacted by CNET, Sprint declined to comment.