Potential high-grade bond deal from T-Mobile to fund Sprint merger pushed back on horizon

By Cristal Cody

Tupelo, Miss., Oct. 17 – A potential investment-grade senior secured bond offering from T-Mobile U.S. Inc. to fund its acquisition of Sprint Corp. is unlikely to price this year, according to an informed source.

The Federal Communications Commission approved the deal on Wednesday, but the company has continued regulatory hurdles to cross with a legal suit by state attorneys general set for a Dec. 9 court date.

T-Mobile held a roadshow in the U.S. and Europe April 30 through May 8 via Barclays, Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC with the merger expected to close in the summer.

A possible secured bond deal size is projected in the $19 billion range.

Affiliate T-Mobile USA Inc. (BBB-/BBB-) has high-grade ratings for senior secured notes.

The all-stock acquisition values Sprint at about $59 billion and the combined company at about $146 billion.

Sprint is an Overland Park, Kan.-based telecommunications company.

T-Mobile is a mobile communications subsidiary of Bonn, Germany-based telecommunications company Deutsche Telekom AG.

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