America’s number four mobile operator T-Mobile US is splitting the sale of US$2bn senior notes equally between two tranches. It is offering US$1bn of 6.125% senior notes due 2022 and US$1bn of 6.5% senior notes due 2024. The 6.125% paper priced at…
America’s number four mobile operator T-Mobile US is splitting the sale of US$2bn senior notes equally between two tranches.
It is offering US$1bn of 6.125% senior notes due 2022 and US$1bn of 6.5% senior notes due 2024.
The 6.125% paper priced at par equal to a spread of 379 bps over US treasuries and the 6.5% notes also priced at par, 383 bps above the benchmark.
The Deutsche Telekom subsidiary has indicated that the proceeds will be in part used to expand its spectrum holdings.
JP Morgan, Credit Suisse, Deutsche Bank, Citigroup, Goldman Sachs, RBC Capital Markets and RBS are joint bookrunners on the offering. In a statement T-Mobile said it expects the offering to close on Thursday.
Following a recent share offering and the cash already on its balance sheet, plus proceeds from this latest bond offering, T-Mobile potentially has a US$6bn-plus war chest, which it could use to buy frequencies or tackle debt.
