By Rebecca Melvin
New York, Dec. 10 – T-Mobile US Inc. sold $870 million of three-year mandatory convertible preferred shares with a $50 per share liquidation preference price to yield 5.5% with a 20% initial conversion premium, according to a pricing sheet.
Pricing of the registered, off-the-shelf deal came at the cheap end of talk, which was for a 5% to 5.5% dividend and a 20% to 25% premium.
There is a $130 million greenshoe for the deal that was sold via joint bookrunning managers Goldman Sachs & Co., Morgan Stanley & Co. LLC and Citigroup Global Markets Inc.
Proceeds will be used for general corporate purposes, including capital investment and acquisitions of additional spectrum unrelated to the spectrum that may be obtained in the Federal Communication Commission’s pending AQS-3 spectrum auction.
The preferred shares are expected to be listed on the New York Stock Exchange under the ticker symbol “TMUS-PRA.”
Bellevue, Wash.-based T-Mobile is a wireless messaging and data services company.
| Issuer: | T-Mobile US Inc.
|
| Issue: | Mandatory convertible preferred stock
|
| Amount: | $870 million
|
| Greenshoe: | $130 million
|
| Maturity: | Dec. 15, 2017
|
| Bookrunners: | Goldman Sachs & Co., Morgan Stanley & Co. LLC, Citigroup Global Markets Inc.
|
| Co-managers: | Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC
|
| Distribution rate: | 5.5%
|
| Price: | Par, $50
|
| Yield: | 5.5%
|
| Premium: | 20%
|
| Threshold appreciation price: | $31.02
|
| Maximum settlement rate: | 1.9342
|
| Minimum settlement rate: | 1.6119
|
| Takeover protection: | Yes
|
| Price talk: | 5%-5.5%, up 20%-25%
|
| Pricing date: | Dec. 9
|
| Settlement date: | Dec. 15
|
| Stock symbol: | Nasdaq: TMUS
|
| Preferred stock symbol: | NYSE: TMUS-PRA
|
| Stock reference price: | $25.85
|
| Market capitalization: | $20.91 billion
|
| Distribution: | Registered, off the shelf
|
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