T-Mobile US, Inc. (NASDAQ: TMUS), a leading wireless telecommunications company with a market value of nearly $297 billion and a remarkable 63.5% return over the past year, has announced a $3.5 billion senior notes offering through its subsidiary, T-Mobile USA, Inc. The offering consists of three parts: $1.25 billion of 5.125% notes maturing in 2032, $1 billion of 5.300% notes maturing in 2035, and $1.25 billion of 5.875% notes maturing in 2055. According to InvestingPro analysis, T-Mobile remains financially strong, positioning the company well for this debt offering.
The transaction is set to close on March 27, 2025, subject to standard closing conditions. T-Mobile USA plans to use the proceeds for general corporate purposes, including potential share buybacks, dividends determined by the Board of Directors, and refinancing existing debt. Over the last year, T-Mobile generated $81.4 billion in revenue with a strong gross profit margin of 63.8%.
The offering is being managed by a group of banks, including Barclays Capital Inc., Deutsche Bank Securities Inc., and Morgan Stanley & Co. LLC, among others. Other financial institutions are also acting as co-managers.
T-Mobile has filed a registration statement and prospectus with the SEC, available to the public on the SEC’s EDGAR website. The press release clarifies that this announcement is not an offer to sell or solicit offers to buy the notes or related securities.
The release also includes forward-looking statements about the notes offering and the planned use of proceeds, which are subject to various risks and uncertainties. Full details are available in T-Mobile’s SEC filings.
This update provides investors with the latest financial news from T-Mobile US, Inc.
In other news, T-Mobile has recently announced a public offering of senior notes through its subsidiary, T-Mobile USA, Inc., with proceeds intended for general corporate purposes, such as share repurchases and debt refinancing. The company also revealed updates to executive compensation agreements, including changes to restricted stock unit awards for key executives and a new compensation agreement for Michael J. Katz, President of Marketing, Strategy, and Products.
In regulatory news, the FCC has granted Starlink, a subsidiary of SpaceX, approval to operate a direct-to-cell service with T-Mobile at higher power levels, despite opposition from rivals like AT&T and Verizon. This partnership, which began in 2022, aims to improve service in remote areas. Additionally, T-Mobile announced changes to its board of directors, including the non-re-election of Kelvin Westbrook and the transition of Srini Gopalan to Chief Operating Officer.
The company also plans to nominate Thomas Dannenfeldt for election to the board at the 2025 Annual Meeting, bringing valuable industry experience. These developments highlight T-Mobile’s strategic financial, executive, and regulatory initiatives.
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