US telco Telephone and Data Systems (TDS) has sold US$175m of senior notes due 2061, partly to fund acquisitions.
Providing additional detail on the previously-reported offering in a new SEC filing, TDS said the notes carry a coupon of 5.87% and mature…
US telco Telephone and Data Systems (TDS) has sold US$175m of senior notes due 2061, partly to fund acquisitions.
Providing additional detail on the previously-reported offering in a new SEC filing, TDS said the notes carry a coupon of 5.87% and mature on 1 December 2061. The settlement date is 3 December 2012.
Underwriters can buy additional notes of up to US$25m at the public offering price minus the underwriting discount to cover any over-allotments, the company stated.
TDS plans to apply to list the notes on the New York Stock Exchange and, if it gains approval, trading is expected to begin 30 days after the settlement date.
The company said the proceeds will be used for general corporate purposes, including acquisitions.
BofA Merrill Lynch, Citigroup, UBS Investment Bank and Wells Fargo Securities were joint bookrunnning managers for the transaction. Co-managers were RBC Capital Markets, BNY Mellon Capital Markets, Comerica Securities, TD Securities and US Bancorp.
Moody’s rated the notes ‘Baa2’, Standard and Poor’s has rated them ‘BBB-minus’ and Fitch rated them ‘BBB’.
Chicago-based 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.
