Telephone and Data Systems ends multiple credit agreements, incurs $9 million penalty

Telephone and Data Systems, Inc. (NYSE:TDS), with a market capitalization of $4.5 billion, announced the termination of three credit agreements after paying in full all outstanding indebtedness and obligations under the arrangements, according to a press release statement based on a filing with the Securities and Exchange Commission. InvestingPro data shows the company maintains strong liquidity with a current ratio of 1.78, indicating sufficient assets to cover short-term obligations.

On Tuesday, the company ended the following agreements: the Amended and Restated Credit Agreement dated July 30, 2021 with CoBank, ACB and other lenders; the Senior Secured Credit Agreement dated September 28, 2023 with Wells Fargo (NYSE:WFC) National Association and other lenders; and the Credit Agreement dated May 1, 2024 with Oaktree Fund Administration, LLC and other lenders.

As a result of terminating the Credit Agreement with Oaktree Fund Administration, LLC, Telephone and Data Systems incurred a termination penalty of $9 million.

The company’s common shares and depositary shares representing interests in its Series UU and Series VV Cumulative Redeemable Perpetual Preferred Stock are listed on the New York Stock Exchange under the symbols (NYSE:TDS), NYSE:TDSPrU, and NYSE:TDSPrV, respectively.

All information in this article is based on a press release statement and the company’s SEC filing.

In other recent news, Telephone and Data Systems Inc . (TDS) reported its second-quarter 2025 earnings, revealing a mixed financial performance. The company posted an earnings per share (EPS) of -$0.05, which was significantly below the forecasted $0.01, marking a surprise of -600%. Despite the EPS miss, TDS managed to exceed revenue expectations, reporting $1.19 billion compared to the anticipated $1.17 billion. Additionally, Raymond (NSE:RYMD) James adjusted its price target for TDS, raising it to $50.00 from $49.00, while maintaining an Outperform rating. This adjustment comes after TDS’s quarterly results, which included details on the T-Mobile transaction and dividends. The company also benefited from lower cash taxes due to recent legislation. These developments reflect ongoing changes and adjustments within TDS as it navigates its financial landscape.

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