T-Mobile Announces Proposed Offering of Senior Notes

Rhea-AI Summary

T-Mobile US, Inc. (TMUS) announced a private offering of Senior Notes: 2.250% due 2026, 3.375% due 2029, and 3.500% due 2031. The offering is exempt from the Securities Act registration, targeting qualified institutional buyers. Proceeds will be used to redeem existing 6.000% Senior Notes due 2023 and 2024. The notes will not be registered or offered in the U.S. without appropriate exemptions. The offering is subject to market conditions, and potential risks include market fluctuations and uncertainties impacting expected results.

Positive

• The planned offering may lead to reduced interest expenses by redeeming higher-rate notes.
• The structure aims to strengthen T-Mobile's financial position by lowering debt servicing costs.

Negative

• Offering may lead to shareholder dilution if notes convert to equity in the future.

T-Mobile US, Inc. (NASDAQ: TMUS) (“T-Mobile”) announced today that T-Mobile USA, Inc., its direct wholly-owned subsidiary (“T-Mobile USA”), plans to offer, subject to market and other conditions, 2.250% Senior Notes due 2026, 3.375% Senior Notes due 2029 and 3.500% Senior Notes due 2031 in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). T-Mobile USA intends to use the net proceeds from the offering to redeem all or a portion of its 6.000% Senior Notes due 2023 and 6.000% Senior Notes due 2024.

The notes will be 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 planned 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/20210510005442/en/

FAQ

What is T-Mobile's recent note offering?

T-Mobile is offering 2.250% Senior Notes due 2026, 3.375% due 2029, and 3.500% due 2031 to institutional buyers.

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

The proceeds will be used to redeem existing 6.000% Senior Notes due in 2023 and 2024.

Why is T-Mobile offering these Senior Notes?

The offering aims to lower interest costs by replacing higher-rate notes with lower-rate ones.

What risks are associated with T-Mobile's note offering?

Risks include prevailing market conditions that could impact the success of the offering and the company's expectations.