By Paul A. Harris
Portland, Ore., Nov. 18 - T-Mobile USA Inc. priced $2 billion of senior notes (expected Ba3/confirmed BB) in two evenly sized tranches on Monday, according to market sources.
A $1 billion tranche of 8.25-year notes priced at par to yield 6 1/8%, at the tight end of the 6 1/8% to 6 3/8% yield talk.
In addition, a $1 billion tranche of 10.25-year notes priced at par to yield 6½%, on top of yield talk that had the 10.25-year notes coming 3/8% behind the yield of the 8.25-year notes.
J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Goldman, Sachs & Co., RBC Capital Markets LLC and RBS Securities Inc. were the joint bookrunners for the public offer.
The Bellevue, Wash.-based wireless network operator plans to use the proceeds for general corporate purposes, including capital investments, enhancing its financial flexibility and opportunistically acquiring additional spectrum in private party transactions and/or government auctions.
| Issuer: | T-Mobile USA Inc.
|
| Amount: | $2 billion
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Goldman, Sachs & Co., RBC Capital Markets LLC and RBS Securities Inc.
|
| Trade date: | Nov. 18
|
| Settlement date: | Nov. 21
|
| Ratings: | Moody's: Expected Ba3
|
| Standard & Poor's: BB
|
| Distribution: | SEC registered
|
| Marketing: | Quick to market
|
|
|
| 8.25-year notes
|
| Amount: | $1 billion
|
| Maturity: | Jan. 15, 2022
|
| Coupon: | 6 1/8%
|
| Price: | Par
|
| Yield: | 6 1/8%
|
| Call protection: | 4.25 years
|
| Price talk: | 6 1/8% to 6 3/8%
|
|
|
| 10.25-year notes
|
| Amount: | $1 billion
|
| Maturity: | Jan. 15, 2024
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Call protection: | 5.25 years
|
| Price talk: | 3/8% behind the 8.25-year notes
|
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