US telco Telephone and Data Systems (TDS) has mandated four banks as lead managers for a bond issue due 2061, the proceeds of which may be used for acquisitions.
BofA Merrill Lynch, Citigroup, UBS Investment Bank and Wells Fargo Securities are joint…
US telco Telephone and Data Systems (TDS) has mandated four banks as lead managers for a bond issue due 2061, the proceeds of which may be used for acquisitions.
BofA Merrill Lynch, Citigroup, UBS Investment Bank and Wells Fargo Securities are joint bookrunnning managers for the planned senior-unsecured notes issue, according to a SEC filing today. The final terms are yet to be disclosed.
The notes will rank on a parity with TDS’ existing senior-secured obligations, the filing stated. However, in some cases, they may be subordinated to the claims of holders of the company’s 6.625% senior notes due 2045, of which about US$116.3m is currently outstanding, the filing added.
Chicago-based TDS said it plans to apply to list the new notes on the New York Stock Exchange. If the application is approved, the company expects trading to begin within 30 days of the original issue date.
Co-managers for the issue are: RBC Capital Markets, BNY Mellon Capital Markets, Comerica Securities, TD Securities and US Bancorp.
Moody’s has assigned the new notes a Baa2 rating, which it says reflects the company’s low leverage, ample liquidity, non-core investments and its potential for “modest” free cash flow generation.
TDS provides both fixed and mobile services and says it aims to expand its existing operations through internal growth and acquisitions. The company posted total revenues of nearly US$4bn for the nine months ended 30 September.
