Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com -- United States Cellular Corporation (NYSE:USM) stock jumped 7% after announcing plans for a special cash dividend of $1.950 billion to $2.075 billion following the closing of its wireless operations sale to T-Mobile US (NASDAQ:TMUS), Inc.
The expected dividend translates to $22.50 to $23.75 per Common Share and Series A Common Share, according to the company’s statement. The board will set record and payment dates when the dividend is declared, contingent on the closing of the T-Mobile transaction.
"We are pleased to provide additional clarity on the expected special dividend to UScellular shareholders, subject to the approval of the Board of Directors and contingent on the closing of the T-Mobile transaction," said Laurent Therivel, UScellular President and CEO.
The company provided a detailed breakdown of the cash calculation, starting with a $4.4 billion gross purchase price. After accounting for various adjustments including a $90 million contingent purchase price adjustment, $1.665 billion in senior notes assumed in an exchange offer, and $865 million in term loan repayments, the net cash available for distribution ranges from $1.950 billion to $2.075 billion.
Telephone and Data Systems, Inc. (NYSE:TDS), which is expected to own approximately 81% of UScellular’s equity at closing, will receive its proportional share of the special dividend.
The company also announced that upon closing of the T-Mobile Transaction (JO:NTUJ), it intends to change its name to Array Digital Infrastructure, Inc. and its NYSE ticker symbol to "AD." Douglas W. Chambers, currently Executive Vice President, Chief Financial Officer and Treasurer, will serve as interim President and CEO of the post-closing business.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.