T-Mobile US announced plans to issue $3 billion-worth of corporate bonds to help fund a $10.5 billion outlay on C-Band spectrum (3.7GHz to 4.2GHz) committed to in a recent auction.
In a stock market announcement, the operator said it would use $2 billion of the funds to pay for C-Band licences it won in the recent US sale [1] and the remainder to refinance existing debt.
Its senior notes are set to mature in three tranches in 2026, 2029 and 2031.
In January it sold $3 billion-worth of in bonds, also to cover spectrum purchases and debt, which stood at $63.2 billion at end-Q4 2020.
During an analyst event last week [2], T-Mobile said it won 40MHz of C-Band spectrum in top markets, with its total outlay covering licences and compensation fees for companies currently using the frequencies.
Since the C-Band spectrum blocks purchased aren’t due to be cleared until end-2023, president of technology Neville Ray noted T-Mobile will focus on deployments in the 600MHz and 2.5GHz bands as part of a goal to complete its 5G network build by that point.
It then plans to use C-Band to supplement capacity in urban and suburban areas.
[1] https://www.mobileworldlive.com/featured-content/top-three/verizon-dominates-us-c-band-sale-with-46b-spend
[2] https://www.mobileworldlive.com/featured-content/top-three/t-mobile-us-details-5g-ambitions
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