By Paul A. Harris
Portland, Ore., March 13 – T-Mobile US, Inc. priced $1.5 billion of senior notes (Ba3/BB) in three tranches on Monday, according to a market source.
The deal featured $500 million of five-year bullet notes which priced at par to yield 4%. The yield printed at the tight end of yield talk that was set in the 4 1/8% area.
In addition, $500 million of eight-year notes priced at par to yield 5 1/8%. The yield printed at the wide end of yield talk in the 5% area.
The long-maturity tranche was made up of $500 million of 10-year notes which priced at par to yield 5 3/8%. The yield came at the wide end of talk for a yield in the 5¼% area.
Deutsche Bank Securities Inc., Barclays Capital Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the joint bookrunners for the public offer.
The issuing entity is wholly owned subsidiary T-Mobile USA, Inc.
The Bellevue, Wash.-based wireless company plans to use the proceeds to refinance debt.
| Issuer: | T-Mobile USA, Inc.
|
| Amount: | $1.5 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Deutsche Bank, Barclays, Citigroup, J.P. Morgan
|
| Trade date: | March 13
|
| Ratings: | Moody’s: Ba3
|
| Standard & Poor’s: BB
|
| Distribution: | SEC registered
|
| Marketing: | Quick to market
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Spread: | 187 bps
|
| Call protection: | Non-callable
|
| Price talk: | 4 1/8% area
|
|
|
| Eight-year notes
|
| Amount: | $500 million
|
| Coupon: | 5 1/8%
|
| Price: | Par
|
| Yield: | 5 1/8%
|
| Spread: | 259 bps
|
| Call protection: | Three years
|
| Price talk: | 5% area
|
|
|
| Ten-year notes
|
| Amount: | $500 million
|
| Coupon: | 5 3/8%
|
| Price: | Par
|
| Yield: | 5 3/8%
|
| Spread: | 276 bps
|
| Call protection: | Three years
|
| Price talk: | 5¼% area
|
|
|
|
|
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