By Paul A. Harris and Toni Weeks
Portland, Ore., Sept. 3 – T-Mobile USA, Inc., a wholly owned subsidiary of T-Mobile US, Inc., priced an upsized $3 billion offering of senior notes (expected ratings Ba3/BB) after the market close on Wednesday, after upsizing the deal from $2 billion earlier in the day.
The company is selling $1.3 billion of 6% senior notes due 2023 and $1.7 billion of 6 3/8% senior notes due 2025 in a registered public offering.
Deutsche Bank Securities Inc. is the left bookrunner. Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are the joint bookrunners.
Barclays, Goldman Sachs & Co. and RBS Securities Inc. are the co-managers.
The 8.5-year notes come with four years of call protection and were talked to yield in the 6 1/8% area, and the 10.5-year notes come with five years of call protection and were talked to yield in the 6˝% area.
The notes in both tranches feature three-year 35% equity clawbacks at par plus the coupon and have 101% poison puts.
Settlement is expected Sept. 5.
The Bellevue, Wash.-based mobile communications company plans to use about $1 billion of the proceeds to redeem its outstanding 7 7/8% senior notes due 2018 and to pay related transaction fees and expenses. The remaining proceeds are slated for general corporate purposes, which may include capital investments and acquisition of additional spectrum.
| Issuer: | T-Mobile USA, Inc.
|
| Issue: | Senior notes
|
| Amount: | $3 billion
|
| Bookrunners: | Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC
|
| Co-managers: | Barclays, Goldman Sachs & Co. and RBS Securities Inc.
|
| Trade date: | Sept. 3
|
| Settlement date: | Sept. 5
|
| Expected ratings: | Moody’s: Ba3
|
| Standard & Poor’s:BB
|
| Distribution: | SEC registered
|
| Marketing: | Quick-to-market
|
|
|
| 8.5-year notes
|
| Amount: | $1.3 billion
|
| Maturity: | 2023
|
| Coupon: | 6%
|
| Price: | Par
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| Yield: | 6%
|
| Call protection: | Four years
|
| Price talk: | 6 1/8% area
|
|
|
|
|
| 10.5-year notes
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| Amount: | $1.7 billion
|
| Maturity: | 2025
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| Coupon: | 6 3/8%
|
| Price: | Par
|
| Yield: | 6 3/8%
|
| Call protection: | Five years
|
| Price talk: | 6˝% area
|
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