Deal was made to help finance carrier’s acquisition of Sprint
Wireless carrier T-Mobile followed its recent $31 billion merger with Sprint by announcing it agreed to sell $19 billion of Senior Secured Notes to help finance the acquisition. The Senior Secured Note sales breakdown was as follows:
• $3,000,000,000 aggregate principal amount of its 3.500% Senior Secured Notes due 2025
• $4,000,000,000 aggregate principal amount of its 3.750% Senior Secured Notes due 2027
•$7,000,000,000 aggregate principal amount of its 3.875% Senior Secured Notes due 2030
• $2,000,000,000 aggregate principal amount of its 4.375% Senior Secured Notes due 2040
• $3,000,000,000 aggregate principal amount of its 4.500% Senior Secured Notes due 2050
The offering of the Notes is closed earlier this week. T-Mobile USA, the carrier’s wholly owned subsidiary, plans to use the net proceeds of this offering to repay amounts borrowed under the bridge credit agreement it incurred in connection with T-Mobile’s merger with Sprint Corporation and liabilities under related interest rate protection agreements.
The Notes were offered and sold only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A and in offshore transactions in reliance on Regulation S under the Securities Act. The Notes and related guarantees will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
In short, T-Mobile seems to be well capitalized and on its way to a bright future as a legitimate competitor to Verizon and AT&T.