11 Jan, 2021

T-Mobile completes $3B, 3-part bond offering; terms

T-Mobile USA Inc. has priced a $3 billion, evenly split three-part unsecured notes offering, placing the five-, eight-, and 10-year bonds at the tight end of talk, sources said. Deutsche Bank led the deal, which was completed with an overall $1 billion upsize.

Proceeds are earmarked for general corporate purposes, which may include financing acquisitions of spectrum and the refinancing of debt.

T-Mobile USA is the third-largest provider of mobile services in the U.S. The company was last seen in October 2020 when it placed a $4.75 billion, investment-grade rated, four-part secured offering of new 2031 and 2060 notes and add-ons to its 2041 and 2051 notes. Terms:

Borrower T-Mobile USA Inc.
Ratings BB/Ba3/BB+
Amount $1 billion
Issue Senior unsecured notes (SEC-registered)
Coupon 2.25%
Price 100
Yield 2.25%
Spread T+175
Maturity Feb. 15, 2026
Call protection Non-call two (first call at par plus 50% coupon)
Price talk 2.375% area
Notes Up-to-40% equity claw at 102.25% until Feb. 15, 2023; change of control put at 101; make-whole at T+50

Borrower T-Mobile USA Inc.
Ratings BB/Ba3/BB+
Amount $1 billion
Issue Senior unsecured notes (SEC-registered)
Coupon 2.625%
Price 100
Yield 2.625%
Spread T+168
Maturity Feb. 15, 2029
Call protection Non-call three (first call at par plus 50% coupon)
Price talk 2.75% area
Notes Up-to-40% equity claw at 102.625% until Feb. 15, 2024; change of control put at 101; make-whole at T+50

Borrower T-Mobile USA Inc.
Ratings BB/Ba3/BB+
Amount $1 billion
Issue Senior unsecured notes (SEC-registered)
Coupon 2.875%
Price 100
Yield 2.875%
Spread T+174
Maturity Feb. 15, 2031
Call protection Non-call five (first call at par plus 50% coupon)
Price talk 3% area
Notes Total deal size increased from $2 billion; up-to-40% equity claw at 102.875 until Feb. 15, 2024; change of control put at 101; make-whole at T+50
Bookrunners DB (left lead)/C/CS/GS/Barc/JPM/MS/RBC
Trade (date) Jan. 11, 2021
Settle Jan 14, 2021 (T+3)