T-Mobile US is offering US$3bn in senior unsecured notes to fund its participation in November’s AWS-3 spectrum auction and redeem maturing debt. The operator plans to issue US$1.7bn of 6.375% senior notes due 2025 and US$1.3bn in 6% senior notes due…
T-Mobile US is offering US$3bn in senior unsecured notes to fund its participation in November’s AWS-3 spectrum auction and redeem maturing debt.
The operator plans to issue US$1.7bn of 6.375% senior notes due 2025 and US$1.3bn in 6% senior notes due 2023.
Deutsche Bank, Citigroup, Credit Suisse and JP Morgan are joint bookrunning managers for the issuance and Barclays, Goldman Sachs and RBS are co-managers.
The US’ smallest nationwide mobile network operator expects to close the offering on 5 September.
In an SEC filing detailing the new bonds, T-Mobile said it plans to participate in the FCC’s upcoming auction of AWS-3 spectrum, set to begin in November. If successful in the auction process, it expects to use a portion of the proceeds from the planned offering to pay for the licences.
It also intends to use US$1bn of the proceeds to redeem its outstanding US$1bn worth of 7.875% senior notes due 2018.
T-Mobile has US$14.4bn in long-term debt. Last year it generated US$24.4bn in revenue and US$4.9bn in EBITDA. In its Q2 results, it said it had 50.5 million customers, closing in on number three mobile operator Sprint Corp which disclosed 54.5 million in its last quarterly report.