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T-Mobile agrees to sell $1.35 billion of 6% notes to Deutsche Telekom
By Lisa Kerner
Charlotte, N.C., April 26 – T-Mobile USA, Inc. entered into a purchase agreement on Monday to issue up to $1.35 billion of its 6% senior notes due April 15, 2024 to its majority stockholder, Deutsche Telekom AG, on or by Nov. 30, according to a form 8-K filed with the Securities and Exchange Commission.
If issued, the notes would be on the same terms as T-Mobile’s $1 billon of 6% senior notes due 2024 issued on April 1.
The purchase price for the notes will be determined on the issue date to reflect the effective yield of 5.14% on the existing 2024 notes, calculated using their average trading price of 103.708 on April 22, the filing stated.
The minimum purchase price would be 103.316 if the notes are issued on the latest permissible issue date of Nov. 30.
Interest would be payable semiannually.
Proceeds would be used to fund low-band spectrum purchases or for outstanding debt.
The Bellevue, Wash.-based wireless communications provider may terminate the purchase commitment under the purchase agreement at any time on or prior to Nov. 5.
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