T-Mobile USA whispers $1 billion 10.25-year notes in high 6% area; pricing Monday

By Paul A. Harris

Portland, Ore., Nov. 2 – T-Mobile USA, Inc. gave early guidance in the high 6% area to its $1 billion offering senior notes due Jan. 15, 2026 (expected ratings Ba3/BB), according to a bond trader.

The 10.25-year notes are set to price Monday afternoon following a mid-morning conference call with investors.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays and Goldman, Sachs & Co. are the joint bookrunners for the public offering.

Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and RBC Capital Markets LLC are the co-managers.

The notes feature a make-whole call at Treasuries plus 50 basis points until Jan. 15, 2021, then become callable at a premium. They also feature a three-year 35% equity clawback.

The issuing entity is a wholly owned subsidiary of T-Mobile US, Inc., a Bellevue, Wash.-based wireless telecommunications company.

T-Mobile plans to use the proceeds for general corporate purposes, which may include acquisition of additional spectrum.

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