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BELLEVUE, Wash. - T-Mobile US, Inc. (NASDAQ: TMUS), a telecommunications giant with a market capitalization of $273.44 billion and annual revenue of $82.69 billion, and its subsidiary T-Mobile USA, Inc. have initiated exchange offers for all outstanding senior notes of United States Cellular Corporation (USCC), following a previously announced Securities Purchase Agreement dated May 24, 2024. According to InvestingPro analysis, T-Mobile is currently trading near its Fair Value, demonstrating the company’s solid market positioning. The exchange offers are for USCC’s senior notes due in 2033, 2069, and 2070, with identical interest rates and maturity dates offered for the new T-Mobile USA notes.
The exchange offers, which also include consent solicitations to amend the USCC indentures, provide an early participation premium and consent fee for holders who tender their notes before the early participation date, set for 5:00 p.m., New York City time, on June 13, 2025. The overall exchange offers will expire on July 1, 2025, unless extended. T-Mobile approaches this transaction from a position of financial strength, with InvestingPro data showing the company’s liquid assets exceeding short-term obligations with a current ratio of 1.16, and an impressive 48% stock return over the past year.
Holders of the 6.700% USCC senior notes due 2033, who tender before the early participation date, will receive $1,000 in new T-Mobile USA notes and a $1.00 cash payment per $1,000 principal amount of the old notes. For the USCC notes due in 2069 and 2070, the early exchange consideration includes $25 in new T-Mobile USA notes and a $0.025 cash payment per $25 principal amount of the old notes. Tenders post the early participation date but before the expiration will receive slightly less consideration, excluding the early participation premium and consent fee.
No accrued but unpaid interest will be paid upon settlement of the exchange offers. However, interest on the new T-Mobile notes will accrue from the last interest payment date of the tendered USCC notes. The new notes will be unsecured and unsubordinated obligations of T-Mobile USA, and will be guaranteed by the Guarantors on equal footing with other unsecured and unsubordinated indebtedness.
T-Mobile USA has applied to list the new notes due in 2069, March 2070, and June 2070 on Nasdaq’s U.S. Bond Exchange, with trading expected to begin on the issue date or shortly thereafter. The company does not intend to list the new 2033 notes on any securities exchange.
The exchange offers are contingent upon certain conditions, including the effectiveness of a SEC registration statement, the closing of the acquisition outlined in the prospectus, and the absence of legal impediments to the exchange.
This press release is based on a press release statement and is meant for informational purposes only. It is not an offer to buy or sell securities. The exchange offers are made solely by the prospectus, which is part of the registration statement filed with the SEC. For a comprehensive analysis of T-Mobile’s financial health and future prospects, investors can access detailed Pro Research Reports and additional financial metrics through InvestingPro, which covers over 1,400 US stocks with in-depth analysis and actionable insights.
In other recent news, T-Mobile US Inc. reported a strong first quarter of 2025, surpassing both earnings and revenue forecasts. The company achieved an earnings per share of $2.58, exceeding the expected $2.47, and reported revenue of $20.89 billion, above the anticipated $20.68 billion. Despite these positive results, the company’s stock experienced a decline in after-hours trading. T-Mobile also announced a strategic partnership with IPG Mediabrands to enhance advertising capabilities using T-Mobile’s first-party data. This collaboration aims to provide innovative advertising solutions and leverage T-Mobile’s mobile data for targeted campaigns.
Additionally, Tigress Financial Partners raised T-Mobile’s 12-month price target to $305, maintaining a Buy rating due to the company’s effective customer acquisition strategies and strong growth prospects. The firm highlighted T-Mobile’s successful marketing initiatives and ultra-high-speed network as key drivers of customer growth. The analysts also noted T-Mobile’s expansion in broadband services and strategic acquisitions as beneficial to the company’s performance. T-Mobile’s ongoing investments in AI-driven technologies are expected to further enhance network performance and customer experience.
These developments reflect T-Mobile’s continued focus on growth and innovation, positioning the company as a leader in the telecommunications industry.
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