The US’ fourth-largest carrier, T-Mobile US, is offering 17.4 million shares of its series A mandatory convertible preferred stock, with a liquidation preference of US$50 per share, to fund spectrum acquisitions. The offering’s underwriters will…
The US’ fourth-largest carrier, T-Mobile US, is offering 17.4 million shares of its series A mandatory convertible preferred stock, with a liquidation preference of US$50 per share, to fund spectrum acquisitions.
The offering’s underwriters will have the option to purchase up to an additional 2.6 million shares, according to a securities filing.
Goldman Sachs, Morgan Stanley and Citigroup acted as joint book-running managers for the offering, while Barclays, Credit Suisse, Deutsche Bank and JP Morgan served as co-managers.
Proceeds from the offering will be used for general corporate purposes, including “capital investments and acquisition of additional spectrum unrelated to spectrum it may obtain in the Federal Communications Commission’s ongoing AWS-3 spectrum auction”, the Deutsche Telekom-owned carrier said in a statement.
The AWS-3 spectrum sale, which kicked off on 13 November, has so far reached US$41.7bn, far above its US$10.1bn reserve price.
Although the bidding is anonymous, T-Mobile US, along with AT&T, Verizon, and Dish Network are expected to be among the highest bidders.
Earlier this month, the telco acquired PCS wireless spectrum licences from US-based regional wireless carrier NTelos for US$56m.
