T-Mobile plans to offer senior notes for refinancing debt

Published 06/10/2025, 14:02
© Reuters

BELLEVUE, Wash. - T-Mobile US, Inc. (NASDAQ:TMUS), the wireless telecommunications giant with a market capitalization of $259 billion and annual revenue of $84 billion, announced Monday that its subsidiary, T-Mobile USA, Inc., plans to offer senior notes in a registered public offering, subject to market and other conditions.

The telecommunications company, which currently maintains $118.7 billion in total debt and a healthy current ratio of 1.21, intends to use the proceeds from the offering to refinance existing debt or for general corporate purposes, according to a press release statement. InvestingPro analysis indicates the company’s overall financial health score is GOOD, with liquid assets exceeding short-term obligations.

Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Wells Fargo Securities, LLC will serve as joint book-running managers for the notes offering.

The company has filed a registration statement with the Securities and Exchange Commission for the offering. The statement includes a prospectus with detailed information about T-Mobile USA and the notes offering.

T-Mobile did not disclose the size, pricing, or timing of the planned debt offering in its announcement.

The press release noted that the announcement does not constitute an offer to sell or a solicitation to buy the notes, related guarantees, or other securities.

In other recent news, T-Mobile USA, Inc. has seen its unsecured ratings upgraded by Moody’s to Baa1 from Baa2, with the outlook adjusted to stable from positive. This upgrade also applies to T-Mobile’s senior unsecured bank credit facility and similar ratings for Sprint Capital Corporation and Sprint LLC. Additionally, T-Mobile’s Prime-2 short-term backed commercial paper program rating was affirmed by Moody’s. In leadership developments, T-Mobile announced that Chief Operating Officer Srini Gopalan will take over as CEO from Mike Sievert, effective November 1, 2025. Sievert will transition to a Vice Chairman role, focusing on strategy and innovation. Meanwhile, TD Cowen reiterated its Buy rating and set a price target of $291.00, while Benchmark also maintained a Buy rating with a $275.00 price target amid the CEO transition. Bernstein SocGen Group reaffirmed a Market Perform rating, setting a price target of $265.00. These developments reflect ongoing strategic shifts and financial evaluations within the company.

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