T-Mobile Announces Proposed Public Offering of Euro-Denominated Senior Notes

Rhea-AI Summary

T-Mobile USA, a wholly-owned subsidiary of T-Mobile US (NASDAQ: TMUS), has announced plans for a euro-denominated senior notes public offering. The company intends to use the proceeds for general corporate purposes, including potential share repurchases, dividend payments, and refinancing of existing debt.

The offering will be managed by joint book-runners Citigroup Global Markets , Goldman Sachs & Co. , J.P. Morgan Securities plc, and Société Générale. A registration statement has been filed with the SEC, and interested investors can access the prospectus through the SEC website or request it directly from the book-running managers.

Positive

• Potential for share repurchases benefiting shareholders
• Opportunity for debt refinancing which could improve financial structure
• Possibility of dividend payments to shareholders

Negative

• Increased debt load through new notes issuance
• Potential currency exposure risk due to euro-denominated debt

Insights

Fixed Income Market Analyst

T-Mobile's strategic decision to tap the European debt market through euro-denominated senior notes is particularly well-timed, given the current interest rate differentials between US and European markets. This move demonstrates sophisticated treasury management by potentially securing lower borrowing costs while adding currency diversification to their debt portfolio.

The flexibility in the use of proceeds is noteworthy, particularly the explicit mention of share repurchases and dividends. This signals strong confidence in T-Mobile's cash flow generation capacity and commitment to shareholder returns. The company's 268.7 billion market cap provides substantial room for capital return initiatives.

The selection of leading European and American investment banks as joint book-runners indicates a dual-market strategy, targeting both US and European institutional investors. This broader investor base could potentially lead to more competitive pricing and enhanced liquidity for the notes.

Key strategic implications include:

• Natural hedge against euro-denominated revenues from international roaming and business operations
• Potential arbitrage opportunities from interest rate differentials
• Diversification of funding sources beyond the US debt market
• Enhanced financial flexibility through multi-currency debt structure

The timing aligns with a period of relative stability in the European fixed income markets, potentially allowing T-Mobile to lock in favorable rates before any potential market shifts. The exclusion of retail investors (as indicated by MiFID II and PRIIPs references) suggests a purely institutional offering, which typically enables more efficient pricing and execution.

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” or the “Issuer”), plans to offer, subject to market and other conditions, euro-denominated senior notes (the “notes”) in a registered public offering. T-Mobile USA intends to use the net proceeds from the offering for general corporate purposes, which may include among other things, share repurchases, any dividends declared by T-Mobile’s Board of Directors and refinancing of existing indebtedness on an ongoing basis.

Citigroup Global Markets Limited, Goldman Sachs & Co. LLC, J.P. Morgan Securities plc and Société Générale are the joint book-running managers for the offering of the notes.

The Issuer has filed a registration statement (including a prospectus) with the Securities and Exchange Commission (“SEC”) for the offering of notes to which this communication relates. Before you invest, you should read the prospectus in that registration statement and the related prospectus supplement and other documents the Issuer has filed with the SEC for more complete information about the Issuer and the offering of notes. You may get these documents for free by visiting EDGAR on the SEC Web site at http://www.sec.gov. Alternatively, the Issuer, any underwriter or any dealer participating in the notes offering will arrange to send you the prospectus and related prospectus supplement if you request it by contacting Citigroup Global Markets Limited, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, Telephone: +1-800-831-9146, Email: prospectus@citi.com; Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, New York 10282, Telephone: +1-866-471-2526, Facsimile: +1-212-902-9316, Email: Prospectus-ny@ny.email.gs.com; J.P. Morgan Securities plc, 25 Bank Street, Canary Wharf, London E14 5JP, United Kingdom, Attention: Head of International Syndicate, Telephone (for non-US investors): +44-20-7134-2468, Email: emea_syndicate@jpmorgan.com or J.P. Morgan Securities LLC (for U.S. investors) at +1-212-834-4533 (call collect) and Société Générale, 29, boulevard Haussmann, 75009 Paris, France, Attention: Syndicate Desk GLBA/SYN/CAP/BND, Telephone: +33 (0)1 42 13 32 16, Email: eur-glba-syn-cap@sgcib.com.

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.

Manufacturer target market (MiFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) pursuant to Regulation (EU) 1286/2014 has been prepared as not available to retail in EEA.

Manufacturer target market (UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No UK PRIIPs key information document (KID) pursuant to Regulation (EU) 1286/2014 as it forms part of UK domestic law by virtue of the EUWA has been prepared as not available to retail in the UK.

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 about 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/20250202715644/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 the purpose of T-Mobile's (TMUS) euro-denominated senior notes offering?

The offering's proceeds will be used for general corporate purposes, including potential share repurchases, dividend payments, and refinancing of existing debt.

Who are the joint book-running managers for TMUS's euro notes offering?

The joint book-running managers are Citigroup Global Markets , Goldman Sachs & Co. , J.P. Morgan Securities plc, and Société Générale.

How can investors access information about T-Mobile's (TMUS) notes offering?

Investors can access the prospectus through the SEC's EDGAR website or request it directly from the book-running managers.

Will T-Mobile's (TMUS) euro notes be available to retail investors in the EEA and UK?

No, the notes are only available to eligible counterparties and professional clients, not retail investors in the EEA and UK.