T-Mobile US has revealed plans to sell two tranches of senior notes in a public offering. It has mandated Deutsche Bank, Citigroup, Credit Suisse and JP Morgan as joint bookrunning managers for the issuance, which will be split between notes maturing in…
T-Mobile US has revealed plans to sell two tranches of senior notes in a public offering.
It has mandated Deutsche Bank, Citigroup, Credit Suisse and JP Morgan as joint bookrunning managers for the issuance, which will be split between notes maturing in 2023 and in 2025.
The US’ fourth largest mobile operator said it may use the proceeds for capital investments, to acquire spectrum, and/or to repay debt.
In an SEC filing T-Mobile said that it plans to participate in the FCC’s upcoming auction of AWS-3 spectrum, set to begin in November. If it is successful in the auction process it expects to use a portion of the proceeds from the planned offering to pay for the licences.
T-Mobile offered no guidance on timing or how much it planned to raise. Its last bond issue was in November 2013 when it sold US$1bn of 6.125% senior notes due 2022 and US$1bn of 6.5% senior notes due 2024.
The Washington-based operator is re-focusing on continuing as an independent business after protracted merger talks between its parent, Deutsche Telekom, and Sprint Corp broke down last month over regulatory concerns.
The US authorities are not keen on seeing the number of nationwide operators in the mobile market fall from four to three, in spite of Sprint and T-Mobile’s weak market positions in comparison to that of leading players AT&T and Verizon Wireless.
