T-Mobile USA launches $3.5 billion senior notes offering

BELLEVUE, Wash. - T-Mobile US, Inc. (NASDAQ: TMUS), a wireless telecommunications giant with a market capitalization of nearly $297 billion and impressive 63.5% return over the past year, has announced the sale of $3.5 billion in senior notes through its subsidiary, T-Mobile USA, Inc. The offering includes three tranches: $1.25 billion of 5.125% notes due in 2032, $1 billion of 5.300% notes due in 2035, and $1.25 billion of 5.875% notes due in 2055. According to InvestingPro analysis, T-Mobile maintains a strong financial health score, making it well-positioned for this debt offering.

The transaction is expected to close on March 27, 2025, contingent upon customary closing conditions. T-Mobile USA plans to allocate the net proceeds for general corporate activities, which may encompass share buybacks, potential dividends as determined by T-Mobile’s Board of Directors, and refinancing existing debt. The company generated robust revenue of $81.4 billion in the last twelve months, with an impressive gross profit margin of 63.8%.

A consortium of banks, including Barclays Capital Inc., Deutsche Bank Securities Inc., and Morgan Stanley & Co. LLC, among others, is managing the book-running for the note offering. Additional financial institutions are serving as co-managers.

T-Mobile has filed the necessary registration statement and prospectus with the SEC, which is accessible to the public on the SEC’s EDGAR website. The press release emphasizes that this announcement is not an offer to sell or a solicitation of an offer to buy the notes or any related securities.

The press release also contains forward-looking statements about the anticipated completion of the notes offering and the intended use of the proceeds. These statements are subject to risks, uncertainties, and assumptions, with further details available in T-Mobile’s SEC filings.

This news is based on a press release statement and provides investors with the latest financial developments from T-Mobile US, Inc.

In other recent news, T-Mobile US, Inc. has announced a public offering of senior notes through its subsidiary, T-Mobile USA, Inc. The proceeds from this offering are intended for general corporate purposes, including potential share repurchases and debt refinancing. Additionally, T-Mobile has updated its executive compensation agreements, impacting restricted stock unit awards for key executives, and disclosed a new compensation agreement for Michael J. Katz, President of Marketing, Strategy, and Products.

In regulatory developments, the FCC has granted Starlink, a SpaceX subsidiary, permission to operate a direct-to-cell service with T-Mobile at increased power levels, despite opposition from competitors like AT&T and Verizon. This decision aims to enhance service delivery in remote areas through a partnership that began in 2022. Furthermore, T-Mobile has announced changes to its board of directors and a key executive appointment. Kelvin Westbrook will not seek re-election, and Srini Gopalan will transition to Chief Operating Officer.

The company plans to nominate Thomas Dannenfeldt for election to the board at the 2025 Annual Meeting, bringing his extensive industry experience. These recent developments highlight T-Mobile’s strategic moves in financial offerings, executive management, and regulatory advancements.

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