T-Mobile amends $6.5 billion of facilities to revise interest rates

By Sarah Lizee

Olympia, Wash., April 2 – T-Mobile US, Inc. subsidiary T-Mobile USA Inc. amended its $2 billion secured term loan due January 2022, $2 billion secured term loan due January 2024, $1.5 billion secured revolving credit facility and $1 billion unsecured revolver, according to an 8-K filing with the Securities and Exchange Commission.

The Thursday amendment revised the interest rates on the 2022 term loan to Libor plus 150 basis points and on the 2024 term loan to Libor plus 175 bps. The secured revolver now bears interest at Libor plus 105 bps to 180 bps, and the unsecured revolver bears interest at Libor plus 205 bps to 305 bps.

The undrawn commitment fee on the secured revolver now ranges from 25 bps to 45 bps, and the undrawn commitment fee on the unsecured revolver now ranges from 20 bps to 57.5 bps.

The revolvers mature on Dec. 29, 2020.

The amendments also modified the facility governing the term loans to include a soft-call prepayment premium of 1% of the outstanding principal amount of the term loans payable to lender Deutsche Telekom AG upon some refinancings the loans by T-Mobile USA with lower priced debt prior to a date that is six months after March 29.

Additionally, some covenants and other provisions were amended to make them substantially consistent, subject to some additional carveouts, with T-Mobile USA’s most recently publicly issued bonds.

Deutsche Bank AG, New York Branch is administrative agent and collateral agent.

T-Mobile is a Bellevue, Wash.-based wireless communications provider.

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