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T-Mobile To Raise $2.5B Via Debt For Buybacks and Growth

Benzinga ·  Sep 24 20:24

On Monday, T-Mobile US, Inc (NASDAQ:TMUS) disclosed plans to raise $2.5 billion through a secondary senior notes offering for general corporate purposes, including share repurchases, dividends, and refinancing of existing indebtedness.

T-Mobile USA subsidiary looks to sell the $700 million aggregate principal amount of its 4.200% Senior Notes due 2029, the $900 million aggregate principal amount of its 4.700% Senior Notes due 2035, and the $900 million aggregate principal amount of its 5.250% Senior Notes due 2055.

Recently, analysts re-rated T-Mobile after it shared its three-year plan, which focused on improving customer experience and dividend boost at a time when its rivals focused on cost-cutting.

Also Read: T-Mobile Partners with NVIDIA, Ericsson, And Nokia to Pioneer AI-Driven Mobile Networks

Oppenheimer analyst Timothy Horan flagged the company's transformation into a wireless carrier in spectrum depth, network performance, growth, free cash flow margins, and its lead in generative artificial intelligence.

KeyBanc analyst Brandon Nispel expects T-Mobile targets to help it become a leading home broadband provider by customer count, beating AT&T Inc (NYSE:T) and Verizon Communications Inc (NYSE:VZ).

T-Mobile reported 3% topline growth in the second quarter, reaching revenue of $19.77 billion, above the analyst consensus of $19.55 billion. The company's quarterly postpaid net account additions stood at 301 thousand. The high-speed internet net customer additions were 406 thousand.

T-Mobile stock is up 45% in the last 12 months. Investors can gain exposure to the stock through BlackRock U.S. Equity Factor Rotation ETF (NYSE:DYNF) and Vanguard Growth ETF (NYSE:VUG).

Price Action: TMUS stock is down 0.23% at $201.99 premarket at the last check Tuesday.

Also Read:

  • T-Mobile Sends First Wireless Emergency Alert Via SpaceX's Starlink Satellites In Space

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