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

Rhea-AI Summary

T-Mobile US has announced a private offering of $3 billion in Senior Secured Notes, which includes $500 million (2.400% due 2029), $1 billion (2.700% due 2032), and $1.5 billion (3.400% due 2052). The offering, exempt from SEC registration, is set to close on December 6, 2021. Proceeds will finance general corporate purposes, including spectrum acquisition and debt refinancing. The notes are sold only to qualified institutional buyers and will not be available for resale unless registered or exempt.

Positive

• Successful issuance of $3 billion in Senior Secured Notes.
• Proceeds intended for financing acquisitions and refinancing debt.

Negative

• Debt increase may raise leverage risks.
• Notes are not registered under the Securities Act, limiting liquidity.

BELLEVUE, Wash.--(BUSINESS WIRE)-- 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 $500,000,000 aggregate principal amount of its 2.400% Senior Secured Notes due 2029 (the “2029 Notes”), $1,000,000,000 aggregate principal amount of its 2.700% Senior Secured Notes due 2032 (the “2032 Notes”) and $1,500,000,000 aggregate principal amount of its 3.400% Senior Secured Notes due 2052 (the “New 2052 Notes,” and collectively with the 2029 Notes and the 2032 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 New 2052 Notes will constitute an additional issuance of T-Mobile USA’s 3.400% Senior Secured Notes due 2052, of which $1,300,000,000 aggregate principal amount was issued on August 13, 2021.

The offering of the notes is scheduled to close on December 6, 2021, subject to satisfaction of customary closing conditions. T-Mobile USA intends to use the net proceeds from the offering for general corporate purposes, which may include among other things, financing acquisitions of additional spectrum and refinancing existing indebtedness on an ongoing basis.

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 related 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/20211201006238/en/

T-Mobile US Media Relations

MediaRelations@T-Mobile.com

or

Investor Relations

investor.relations@t-mobile.com

Source: T-Mobile US, Inc.

FAQ

What is T-Mobile's recent bond offering amount and structure?

T-Mobile is offering $3 billion in Senior Secured Notes, including $500 million due 2029, $1 billion due 2032, and $1.5 billion due 2052.

When will the T-Mobile bond offering close?

The T-Mobile bond offering is scheduled to close on December 6, 2021.

What will T-Mobile use the proceeds from its bond offering for?

The proceeds will be used for general corporate purposes, including spectrum acquisition and refinancing existing debt.

Who can purchase T-Mobile's Senior Secured Notes?

The notes are offered solely to qualified institutional buyers and cannot be sold in the U.S. without registration or an exemption.

What are the risks associated with T-Mobile's recent bond offering?

There are risks including increased leverage and limited liquidity since the notes are not registered under the Securities Act.