BELLEVUE, Wash. - T-Mobile US, Inc. (NASDAQ: NASDAQ:TMUS) announced its intention to issue senior notes through a public offering conducted by its wholly-owned subsidiary, T-Mobile USA, Inc. The company, a major player in the telecommunications industry, aims to utilize the net proceeds for a variety of general corporate activities. These may include share repurchases, payment of dividends as decreed by the Board of Directors, and the refinancing of existing debt.
The offering's joint book-running managers are J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, and Wells Fargo Securities, LLC. T-Mobile USA has already filed a registration statement with the Securities and Exchange Commission (SEC), which includes a prospectus and other relevant documents that offer more comprehensive details about the issuer and the offering.
Potential investors are encouraged to read these materials, which are available on the SEC's EDGAR website, to gain a full understanding of the offering. The documents can also be obtained upon request from the underwriters involved in the notes offering.
It is important to note that this announcement is not an offer to sell or a solicitation of an offer to buy the notes or any related guarantees. The sale of these securities will not take place in any jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
The press release also contains forward-looking statements based on the current expectations of T-Mobile's management. These include the planned note offering and the anticipated use of the proceeds. However, these statements are subject to risks, uncertainties, and assumptions. If these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, the actual results could differ significantly from those projected.
This news is based on a press release statement from T-Mobile US, Inc. and has been reported to provide investors and the public with factual information regarding the company's financial activities.
In other recent news, T-Mobile's financial outlook for 2027 has been positively received by multiple financial institutions. The company projects 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. TD Cowen, Oppenheimer, and Scotiabank have all maintained high ratings for T-Mobile, with TD Cowen highlighting T-Mobile's $20 billion investment potential for mergers and acquisitions, and its plans for $50 billion in shareholder returns.
JPMorgan and Evercore ISI have also increased their price targets for T-Mobile, reflecting confidence in the company's growth strategy and financial health. The plans to return $50 billion to shareholders and the anticipation of having $20 billion available for potential mergers and acquisitions, debt reduction, or further capital returns by 2027 were noted as key highlights.
In addition, T-Mobile announced a 35% increase in its quarterly dividend to $0.88 per share, indicating a robust financial position. The company's partnerships with OpenAI and NVIDIA (NASDAQ:NVDA) aim to drive innovation in radio access networks and enhance customer experiences, aligning with the goal to acquire 12 million 5G broadband customers by 2028 and boost its EBITDA by $10 billion by 2027. These are part of T-Mobile's recent strategic developments.
InvestingPro Insights
As T-Mobile US, Inc. (NASDAQ: TMUS) prepares for its public offering of senior notes, insightful data from InvestingPro provides a deeper look into the company's financial health and market performance. With a strong presence in the telecommunications industry, T-Mobile's strategic movements are closely watched by investors.
InvestingPro Data shows that T-Mobile has a market capitalization of $232.7 billion, reflecting its significant footprint in the market. The company's P/E ratio stands at 24.53, which is noteworthy when considering its near-term earnings growth, resulting in a PEG ratio of 0.41 for the last twelve months as of Q2 2024. This suggests that T-Mobile's earnings growth may not be fully reflected in its current share price. Additionally, the company's revenue for the same period is reported at $79.1 billion, with a modest revenue growth of 0.66%.
InvestingPro Tips highlight that T-Mobile has a perfect Piotroski Score of 9, indicating strong financial health. Moreover, the stock is known for low price volatility, which might appeal to investors seeking stability. However, it is also important to note that two analysts have revised their earnings expectations downwards for the upcoming period. Despite this, T-Mobile is trading near its 52-week high and has experienced a large price uptick over the last six months, underscoring investor confidence.
For those interested in further analysis and additional InvestingPro Tips, there are more tips available on InvestingPro's platform (https://www.investing.com/pro/TMUS). These tips could provide valuable insights for investors considering T-Mobile's notes offering and overall investment potential.
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