Deutsche Telekom is to sell US$3.1bn of notes it holds in its American subsidiary T-Mobile US. DT is offloading US$1.25bn of 6.464% senior notes due 2019, US$1.25bn of 6.633% senior notes due 2021, and US$600m of 6.836% senior notes due 2023. According…
Deutsche Telekom is to sell US$3.1bn of notes it holds in its American subsidiary T-Mobile US.
DT is offloading US$1.25bn of 6.464% senior notes due 2019, US$1.25bn of 6.633% senior notes due 2021, and US$600m of 6.836% senior notes due 2023.
According to an SEC filing Deutsche Bank is leading a group of joint book-running managers, which also includes Citigroup, Credit Suisse, Goldman Sachs, JP Morgan and Morgan Stanley.
In a statement DT said the proceeds of the sale of the bonds will be used for general corporate purposes.
The German incumbent has looked to exit the US. In 2011 it agreed to sell the business to AT&T for US$39bn, but that deal unravelled due to regulatory difficulties.
This year T-Mobile US began to float on the NYSE following its reverse merger with MetroPCS, giving DT a new exit route.
Since the MetroPCS deal closed in May the combined company’s share price has risen from US$16.25 to US$25.95 – an increase of close to 60%.
