Sprint is raising $1.1 billion through a sale-and-lease arrangement that would be cheaper than getting capital through the debt markets.

But the wireless carrier was forced to cut its full-year outlook for earnings before interest, taxes, depreciation and amortization and its shares fell sharply.

Sprint will sell customer leases to newly formed company called Mobile Leasing Solutions. The company was formed by a group of investors that Japan's SoftBank, which holds an 83 percent stake in Sprint Corp.

Sprint, based in Overland Park, Kansas, said the transaction will immediately improve the company's cash position.

The company said it now expects adjusted EBITDA between $6.8 billion and $7.1 billion for the year, down from its previous forecast between $7.2 billion and $7.6 billion.

Shares of Sprint fell 23 cents, or 5.7 percent, to $3.82 in morning trading Friday.