Sprint Corp. is paying above-market interest rates on new notesto become the leading issuer of U.S. junk bonds this year as itseeks to fund an expansion of the country's third-largest wirelessnetwork.

Sprint raised $2.5 billion Monday with securities due in June2024 paying a coupon of 7.125 percent, 66 basis points more thanthe average yield for similar-maturity debt in the B credit ratingtier, according to data compiled by Bloomberg. The sale adds toSprint's more than $12 billion of issuance in the past 24 months tolead speculative-grade borrowers during two years of record annualofferings of at least $350 billion.

Enticing bond investors with higher-than-average coupons mayhelp the Overland Park, Kansas-based company finance capitalexpenditures that are growing at a faster pace than AT&T Inc.and Verizon Communications Inc. Monday's sale followed a $6.5billion offering in September that ranked as the biggest high-yieldissue since 2008.