By Paul A. Harris
Portland, Ore., Jan. 11 – T-Mobile USA, Inc. priced an upsized to $3 billion of senior notes (Ba3/BB/BB+) in three $1 billion tranches in a Monday drive-by, according to market sources.
The deal, which was heard to be playing to $11 billion of demand across all three tranches, featured five-year notes that priced at par to yield 2¼%, tight to talk in the 2 3/8% area. Initial talk was 2¾% to 2 7/8%.
The offering also featured eight-year notes that priced at par to yield 2 5/8%, tight to talk in the 2¾% area. Initial talk was 3 1/8% to 3¼%.
The long tranche featured 10-year notes that priced at par to yield 2 7/8%, tight to talk in the 3% area. Initial talk was 3 3/8% to 3½%.
Deutsche Bank Securities was at the left of a syndicate of bookrunners that also included Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Barclays, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets LLC.
The Bonn, Germany-based telecom plans to use the proceeds for working capital, capital expenditures, debt repayment, the acquisition of additional spectrum, asset or business acquisitions, the repurchase, redemption or retirement of securities, corporate development opportunities and future technology initiatives.
| Issuer: | T-Mobile USA, Inc.
|
| Amount: | $3 billion, increased from $2 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Barclays, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets LLC
|
| Trade date: | Jan. 11
|
| Settlement date: | Jan. 14
|
| Ratings: | Moody's: Ba3
|
| S&P: BB
|
| Fitch: BB+
|
| Distribution: | SEC registered
|
| Marketing: | Drive-by
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 15, 2026
|
| Coupon: | 2¼%
|
| Price: | Par
|
| Yield: | 2¼%
|
| Spread: | 175 bps
|
| Call protection: | Two years
|
| Price talk: | 2 3/8% area
|
|
|
| Eight-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 15, 2029
|
| Coupon: | 2 5/8%
|
| Price: | Par
|
| Yield: | 2 5/8%
|
| Spread: | 168 bps
|
| Call protection: | Three years
|
| Price talk: | 2¾% area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 15, 2031
|
| Coupon: | 2 7/8%
|
| Price: | Par
|
| Yield: | 2 7/8%
|
| Spread: | 174 bps
|
| Call protection: | Five years
|
| Price talk: | 3% area
|
|
|
|
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