BELLEVUE, Wash. - T-Mobile US, Inc. (NASDAQ: NASDAQ:TMUS) has announced a public offering of $2.5 billion in senior notes through its subsidiary T-Mobile USA, Inc. The offering is divided into three tranches: $700 million of 4.200% Senior Notes due in 2029, $900 million of 4.700% Senior Notes due in 2035, and $900 million of 5.250% Senior Notes due in 2055.
The closing of the offering is anticipated for September 26, 2024, contingent upon customary closing conditions. T-Mobile USA aims to allocate the net proceeds for general corporate purposes. These may include share repurchases, dividends as declared by the T-Mobile Board of Directors, and ongoing refinancing of existing debt.
A consortium of banks, including J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC, are serving as joint book-running managers for the note offering. Other institutions, such as RBC Capital Markets, LLC and Wells Fargo Securities, LLC, are also involved. Several firms, including Academy Securities, Inc. and American Veterans Group, PBC, are participating as co-managers.
This initiative follows T-Mobile's registration statement filing with the Securities and Exchange Commission (SEC), which includes a prospectus and other relevant documents detailing the offering. The documents are accessible through the SEC's EDGAR system.
The press release includes forward-looking statements based on management's expectations, outlining the anticipated closing and use of proceeds. However, these statements are subject to market conditions and other risks. T-Mobile acknowledges that actual results may differ from expectations due to various risk factors, many of which are detailed in the company's SEC filings.
The announcement clarifies that this press release does not constitute an offer to sell or a solicitation of an offer to buy the notes or any other securities and is not valid in jurisdictions where such offers or sales are prohibited.
This news is based on a press release statement from T-Mobile US, Inc.
In other recent news, T-Mobile US, Inc. announced a senior note offering to fund various corporate activities such as share repurchases, dividend payments, and debt refinancing. The offering is managed by J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, and Wells Fargo Securities, LLC. In addition, T-Mobile recently unveiled its financial outlook for 2027, projecting service revenue between $75 billion and $76 billion, EBITDA of $38 billion to $39 billion, and free cash flow in the range of $18 billion to $19 billion.
Analysts from TD Cowen, Oppenheimer, Scotiabank, JPMorgan, and Evercore ISI have maintained high ratings for T-Mobile, with several firms raising their price targets. The company also announced a 35% increase in its quarterly dividend to $0.88 per share and partnerships with OpenAI and NVIDIA (NASDAQ:NVDA), as part of its strategic developments.
T-Mobile's ambitious plans include a $20 billion reserve for potential mergers and acquisitions, and plans for $50 billion in shareholder returns. These recent developments highlight T-Mobile's commitment to growth and shareholder value.
InvestingPro Insights
As T-Mobile US, Inc. (NASDAQ: TMUS) ventures into the market with its $2.5 billion senior note offering, the company's financial health and stock performance are of particular interest to investors. According to InvestingPro data, T-Mobile's market cap stands at a robust $235.71 billion, reflecting the company's significant presence in the telecommunications sector. The stock is trading at a P/E ratio of 25.08, which adjusts to 22.96 when considering the last twelve months as of Q2 2024. This valuation indicates a potentially attractive investment opportunity when paired with the company's near-term earnings growth, as T-Mobile is trading at a low P/E ratio relative to this growth.
The company's revenue for the last twelve months as of Q2 2024 reached $79.1 billion, with a gross profit margin of 63.6%, underlining T-Mobile's ability to maintain profitability. Additionally, the company has experienced a 26.95% price total return over the past six months, showcasing strong market performance which may appeal to investors looking for growth in their portfolio.
InvestingPro Tips highlight that T-Mobile has a perfect Piotroski Score of 9, indicating a very healthy financial state, and analysts predict the company will be profitable this year. However, investors should note that two analysts have revised their earnings downwards for the upcoming period. It's also worth considering that T-Mobile is a prominent player in the Wireless Telecommunication Services industry, which might provide a degree of stability and predictability in its stock performance.
For those interested in a deeper analysis, InvestingPro offers additional tips on T-Mobile, which can be accessed on their platform. With a total of 12 InvestingPro Tips available, investors can gain a comprehensive understanding of TMUS's financial health and stock potential.
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