By Paul A. Harris
Portland, Ore., Nov. 2 – T-Mobile USA, Inc. priced an upsized $2 billion issue of 10.25-year senior notes (Ba3/BB) at par to yield 6½% on Monday, according to market sources.
The issue size was increased from $1 billion.
The yield printed at the tight end of yield talk in the 6 5/8% area. Initial yield guidance was in the high 6% area, according to a market source.
Deutsche Bank Securities Inc. was the left bookrunner. Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays and Goldman Sachs & Co. were the joint bookrunners.
The issuing entity is a wholly owned subsidiary of T-Mobile US, Inc., a Bellevue, Wash.-based wireless telecommunications company.
T-Mobile plans to use the proceeds for general corporate purposes, which may include acquisition of additional spectrum.
| Issuer: | T-Mobile USA, Inc.
|
| Amount: | $2 billion, increased from $1 billion
|
| Maturity: | Jan. 15, 2026
|
| Securities: | Senior notes
|
| Left bookrunner: | Deutsche Bank Securities Inc.
|
| Joint bookrunners: | J.P. Morgan Securities LLC, Barclays, Goldman Sachs & Co.
|
| Co-managers: | Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 432 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Jan. 15, 2021 then callable at 103.25
|
| Trade date: | Nov. 2
|
| Settlement date: | Nov. 5
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | SEC registered
|
| Price talk: | 6 5/8% area
|
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