Sprint Nextel Corp. (NYSE: S) is effectively trading only as a stock option now that its common stock is trading at such a low price.  Investors who want to own Sprint might want to consider the debt in the company.

The company recently raised $2 billion in bond offerings and those deals have now closed…

• $1 billion aggregate principal amount of 9.125% Notes due 2017
• $1 billion aggregate principal amount of 7% Guaranteed Notes due 2020

The 2020 Notes are guaranteed by the company’s subsidiaries that guarantee its existing credit agreements.

Sprint intends to use the capital for general corporate purposes… which may include redemptions or service requirements of outstanding debt, network expansion and modernization and potential funding of Clearwire Corporation (NASDAQ: CLWR) and its subsidiary Clearwire Communications LLC.

Clearwire shares are down 3% today, but this bond offering helped the stock rise from $2.05 to $2.40 before today.  Sprint Nextel shares are up 2.3% at $2.53 today and shares were down around $2.40 before this bond offering.