The banks working on T-Mobile US’ stock offering have exercised their greenshoe option to purchase a further 6.6 million shares at US$25 each, or US$165m in total. The underwriters are Morgan Stanley, Goldman Sachs, JP Morgan, Credit Suisse…
The banks working on T-Mobile US’ stock offering have exercised their greenshoe option to purchase a further 6.6 million shares at US$25 each, or US$165m in total.
The underwriters are Morgan Stanley, Goldman Sachs, JP Morgan, Credit Suisse and Deutsche Bank.
T-Mobile said it now expects to raise a total of US$1.8bn from the offering, following the pricing of 66.1 million common shares last Thursday (14 November).
The US$25 offer price is at a 9.8% discount to T-Mobile’s opening share price on 12 November when the challenger operator first announced the issue. The stock is currently trading at US$26.
The NYSE-listed mobile operator plans to use proceeds from the public offering for capital expenditure, including spectrum. Last week, T-Mobile disclosed it was close to acquiring spectrum from an unidentified private party. It also plans to use the proceeds from a US$2bn bond offering announced today for the same purposes.
T-Mobile’s share issue will dilute Deutsche Telekom’s stake in the business from 74% to 67% and the German incumbent has said it will not buy any of the new shares.
In a statement last week, Deutsche Telekom said: “This is another step to strengthen the self-funding basis of T-Mobile US after for example the tower sale [to Crown Castle in 2012], the bond issuance in 2013 or the sale of T-Mobile bonds from Deutsche Telekom to investors outside the group [last month].
“We look at the recent operational and financial performance of T-Mobile US with pride. Deutsche Telekom remains committed to the business.”
Since T-Mobile was listed six months ago – following its reverse merger with MetroPCS – its shares have risen 66%.
