T-Mobile Agrees to Sell $3.0 Billion of Senior Notes

Rhea-AI Summary

T-Mobile USA, Inc., a subsidiary of T-Mobile, announced a private offering of up to $3 billion in Senior Notes. This includes $800 million of 2.250% notes due 2026, $1.1 billion of 3.375% notes due 2029, and $1.1 billion of 3.500% notes due 2031. The offering is exempt from registration under the Securities Act, and the closing is expected on May 13, 2021. Proceeds will be used mainly to redeem existing Senior Notes and refinance other debts. Investors should be aware of risks associated with forward-looking statements regarding market conditions.

Positive

• T-Mobile is refinancing debt, which may lower interest expenses.
• The offering includes a significant amount of Senior Notes, indicating strong investor interest.

Negative

• The company is increasing overall debt levels with new note issuances.
• Existing Senior Notes have higher interest rates, indicating potential cash flow pressures.

T-Mobile US, Inc. (NASDAQ: TMUS) (“T-Mobile”) announced today that T-Mobile USA, Inc., its direct wholly-owned subsidiary (“T-Mobile USA”), has agreed to sell $800,000,000 aggregate principal amount of its 2.250% Senior Notes due 2026 (the “2026 notes”), $1,100,000,000 aggregate principal amount of its 3.375% Senior Notes due 2029 (the “2029 notes”) and $1,100,000,000 aggregate principal amount of its 3.500% Senior Notes due 2031 (the “2031 notes,” and collectively with the 2026 notes and the 2029 notes, the “notes”) in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). The 2026 notes, the 2029 notes and the 2031 notes will constitute additional issuances of T-Mobile USA’s 2.250% Senior Notes due 2026, 3.375% Senior Notes due 2029 and 3.500% Senior Notes due 2031, respectively, of which $1,000,000,000, $1,250,000,000 and $1,350,000,000 aggregate principal amount was respectively issued on January 14, 2021, March 23, 2021 and March 23, 2021. The offering of the notes is scheduled to close on May 13, 2021, subject to satisfaction of customary closing conditions. T-Mobile USA intends to use the net proceeds from the offering first to redeem its 6.000% Senior Notes due 2023, 6.000% Senior Notes due 2024 and 5.125% Senior Notes due 2025 and then for refinancing other indebtedness.

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.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the notes, the guarantees or any other securities, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements that are based on T-Mobile management’s current expectations. Such statements include, without limitation, statements regarding the expected closing of the offering of the notes and statements regarding the intended use of proceeds from the offering of the notes. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including, without limitation, prevailing market conditions and other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. More information about potential risk factors that could affect T-Mobile and its results is included in T-Mobile’s filings with the SEC, which are available at http://www.sec.gov.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210510006004/en/

FAQ

What are the details of T-Mobile's recent Senior Notes offering?

T-Mobile USA announced an offering of $3 billion in Senior Notes, including $800 million of 2.250% notes due 2026, $1.1 billion of 3.375% notes due 2029, and $1.1 billion of 3.500% notes due 2031.

When is the closing date for the T-Mobile Senior Notes offering?

The closing date for T-Mobile's Senior Notes offering is scheduled for May 13, 2021.

How will T-Mobile use the proceeds from the Senior Notes?

T-Mobile plans to use the net proceeds to redeem existing Senior Notes and refinance other indebtedness.

What are the risks associated with T-Mobile's Senior Notes offering?

Risks include potential market condition fluctuations and the impact of increasing debt levels on cash flow.