Sprint Corp announced it would raise $1.1 billion in cash via a deal of sale and leaseback with a company, whose backers included Softbank Group in Japan, the majority owner of the telecom company.

Sprint citing this deal cut its adjusted full-year EBITDA forecast from between $7.2 billion and $7.6 billion to $6.8 billion and $7.1 billion.

The telecom giant is now expecting to record a $50 million to $250 million operating loss for the full year, compared to a profit of between $200 million and $500 million that had been forecasted earlier, Tarek Robbiati the CFO said.

Shares at Sprint were down by up to 6.2% in late trading on Friday.

The deal of lease back is aimed at the lowering of costs resulting from the switch to new plans of financing for phones, which allow the monthly payments from the traditional contract of two years.

These new plans have delayed money from coming into the company for payments and led to cash burn, as the business needs to make payments upfront to the phone makers.

One analyst said the deal was critical but was smaller than investors had wanted and that coupled with the recent price cut of 50% was not sufficient to stop the overall bleeding.

Earlier in the week, Sprint said its customers that switch it from AT&T, T-Mobile and Verizon will need to pay just half of what they were paying for their plan at the other company.

Investors have been worrying that Sprint has burned cash at a very quick pace as it is locked into a big battle for new subscribers.

The total liabilities of Sprint were $59.7 billion on September 30, while cash as well as its equivalents sat at $1.97 billion.

Earlier in November, Sprint announced it was aiming to slash its fiscal expenses in 2016 by up to $2.5 billion through cost cuts that include layoff.

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