By Cristal Cody
Tupelo, Miss., June 19 – T-Mobile U.S. Inc. subsidiary T-Mobile USA, Inc. priced $4 billion of senior secured notes (Baa3/BBB-/BBB-) in three tranches in a Rule 144A and Regulation S offering on Thursday to strong demand, according to a market source and a news release.
A $1 billion tranche of 1.5% notes due Feb. 15, 2026 priced at a spread of 120 basis points over Treasuries.
Initial price talk was at the Treasuries plus 140 bps area with guidance firmed to the 125 bps area, plus or minus 5 bps.
The company sold $1.25 billion of 2.05% notes due Feb. 15, 2028 at a spread of 155 bps over Treasuries.
The notes price on the tight side of guidance in the Treasuries plus 160 bps area, plus or minus 5 bps, and better than initial talk in the 180 bps over Treasuries area.
Also, a $1.75 billion tranche of 2.55% notes due Feb. 15, 2031 priced at a Treasuries plus 187.5 bps spread.
The notes were talked to price at the Treasuries plus 215 bps area with guidance firmed to the 190 bps area, plus or minus 2.5 bps.
The final order book totaled more than $10 billion.
Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used for ongoing liability management, including the redemption of unsecured notes.
T-Mobile is a Bellevue, Wash.-based wireless communications provider and subsidiary of Bonn, Germany-based telecommunications company Deutsche Telekom AG.
| Issuer: | T-Mobile USA, Inc.
|
| Amount: | $4 billion
|
| Description: | Senior secured notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities, LLC
|
| Trade date: | June 18
|
| Settlement date: | June 24
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Long five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 15, 2026
|
| Coupon: | 1.5%
|
| Spread: | Treasuries plus 120 bps
|
| Price guidance: | Treasuries plus 125 bps area, plus or minus 5 bps; initial talk at Treasuries plus 140 bps area
|
|
|
| Long seven-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Feb. 15, 2028
|
| Coupon: | 2.05%
|
| Spread: | Treasuries plus 155 bps
|
| Price guidance: | Treasuries plus 160 bps area, plus or minus 5 bps; initial talk at Treasuries plus 180 bps area
|
|
|
| Long 10-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | Feb. 15, 2031
|
| Coupon: | 2.55%
|
| Spread: | Treasuries plus 187.5 bps
|
| Price guidance: | Treasuries plus 190 bps area, plus or minus 2.5 bps; initial talk at Treasuries plus 215 bps area
|
|
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