AT&T said that the purchase will be funded through new debt, as well as cash currently on the company’s balance sheet. It mentioned in its statement that it has an 18-month commitment with JP Morgan for a US$20bn one-year unsecured bridge loan. It…
AT&T said that the purchase will be funded through new debt, as well as cash currently on the company’s balance sheet.
It mentioned in its statement that it has an 18-month commitment with JP Morgan for a US$20bn one-year unsecured bridge loan.
It added that it would not be taking on any debt from either Deutsche Telekom or T-Mobile USA.
For its part, Deutsche Telekom gave some details of what it will be doing with the US$25bn that it will receive as a result of this deal.
US$13bn will go on paying off debt. The pro forma ratio of net debt to EBITDA will be reduced from 2.2x to 1.9x, which represents a fall of 31%.
US$5bn will go on share buybacks, which will take place after the closure of the transaction.
Deutsche said that its guidance for 2011 remained unchanged, and that it expects an adjusted EBITDA of E19.1bn.
