Published on 1/22/2018 in the Prospect News High Yield Daily.
New Issue: T-Mobile sells $2.5 billion drive-by deal in eight-, 10-year tranches
By Paul A. Harris
Portland, Ore., Jan. 22 – T-Mobile priced $2.5 billion of senior notes (Ba2/BB+) in two tranches in a quick-to-market Monday trade, according to market sources.
The deal included $1 billion of eight-year notes that price at par to yield 4½%. The yield printed at the tight end of yield talk in the 4 5/8% area.
In addition, the company sold $1.5 billion of 10-year notes at par to yield 4¾%. The yield printed at the tight end of yield talk in the 4 7/8% area.
Deutsche Bank Securities Inc., Barclays, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the joint bookrunners.
The Bellevue, Wash.-based mobile telecom, which is offering the note via its wholly owned subsidiary T-Mobile USA, Inc., plans to use the proceeds to redeem up to $1.75 billion of T-Mobile USA’s 6 5/8% senior notes due 2023 and up to $600 million of T-Mobile USA’s 6.836% senior notes due 2023, with the balance to be used for general corporate purposes, including a partial paydown of the T-Mobile USA revolving credit facilities.
| Issuer: | T-Mobile USA, Inc.
|
| Amount: | $2.5 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities Inc., Barclays, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Trade date: | Jan. 22
|
| Settlement date: | Jan. 25
|
| Ratings: | Moody's: Ba2
|
| S&P: BB+
|
| Distribution: | SEC registered
|
| Marketing: | Quick to market
|
|
|
| Eight-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 1, 2026
|
| Coupon: | 4½%
|
| Price: | Par
|
| Yield: | 4½%
|
| Spread: | 186 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Feb. 1, 2021, then callable at 102.25
|
| Equity clawback: | 40% at 104.5 until Feb. 1, 2021
|
| Price talk: | 4 5/8% area
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Feb. 1, 2028
|
| Coupon: | 4¾%
|
| Price: | Par
|
| Yield: | 4¾%
|
| Spread: | 209 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Feb. 1, 2023, then callable at 102.375
|
| Equity clawback: | 40% at 104.75 until Feb. 1, 2021
|
| Price talk: | 4 7/8% area
|
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