BELLEVUE, Wash. - T-Mobile US, Inc. (NASDAQ: NASDAQ:TMUS) has announced through its direct wholly-owned subsidiary, T-Mobile USA, the sale of €2 billion in aggregate principal amount of senior notes. The offering includes three tranches: €600 million of 3.550% senior notes due in 2029, €750 million of 3.700% senior notes due in 2032, and €650 million of 3.850% senior notes due in 2036.
The transaction is expected to close on May 8, 2024, subject to customary closing conditions. T-Mobile USA has stated that the net proceeds from the sale will be used for general corporate purposes. These may encompass share repurchases, potential dividends as declared by T-Mobile's Board of Directors, and the refinancing of existing debt.
A consortium of banks, including Barclays Bank PLC, BNP Paribas (OTC:BNPQY), and Deutsche Bank AG (NYSE:DB), among others, are managing the book-running for this offering. Additional co-managers include ING Bank N.V. and NatWest Markets Plc.
The notes are being offered following a registration statement filed with the Securities and Exchange Commission (SEC). Prospective investors are advised to read the prospectus and related documents filed with the SEC to understand the details of the offering.
This press release includes forward-looking statements, with T-Mobile management expressing expectations regarding the closing of the notes offering and the intended use of proceeds. However, these statements are subject to market conditions and other factors that could cause actual results to differ materially from expectations.
The offering is primarily aimed at eligible counterparties and professional clients, with no provisions for a PRIIPs key information document in the EEA or the UK, as the notes are not available to retail investors in those regions.
This announcement is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
InvestingPro Insights
T-Mobile US, Inc. (NASDAQ: TMUS) has recently made headlines with its significant senior notes offering. As investors consider the implications of this financial move, it's crucial to look at the company's current market performance and analyst expectations.
According to real-time data from InvestingPro, T-Mobile boasts a robust market capitalization of $192.38 billion, signaling strong investor confidence in the company's market position and future prospects.
With a forward-looking P/E ratio of 19.6, T-Mobile is trading at a valuation that suggests a reasonable price relative to near-term earnings growth. This is further supported by a PEG ratio of just 0.16, indicating that the stock may be undervalued given its earnings growth potential. Moreover, the company's gross profit margin stands at a healthy 63.15%, showcasing its ability to maintain profitability over the last twelve months.
InvestingPro Tips highlight that management's aggressive share buyback strategy could be a positive signal for investors, reflecting the leadership's belief in the company's value. Moreover, T-Mobile is recognized as a prominent player in the Wireless Telecommunication Services industry, which may offer additional stability and growth opportunities. It's also worth noting that the stock is trading near its 52-week high, and analysts predict the company will maintain profitability this year.
Investors interested in a deeper dive into T-Mobile's performance and future outlook can find additional InvestingPro Tips at https://www.investing.com/pro/TMUS. Currently, there are 9 more tips available on InvestingPro, providing a comprehensive analysis for those looking to make informed decisions. To enhance your investing experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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