T-Mobile prices its public offering of 17.4M shares


In a press release published this morning, T-Mobile announced the pricing of its registered public offering. The carrier is offering 17.4 million shares of 5.50% mandatory convertible preferred stock at a price of $50 per share. T-Mo hopes to raise around $854 million from the public offering. It’s also giving underwriters the opportunity to buy up to an additional 2.6 million shares of Mandatory Convertible Preferred Stock.

As with any public offering, T-Mobile is planning to use the funds raised to buy more spectrum. T-Mo is clear that this – in no way – relates to the AWS-3 spectrum currently underway.

“Unless converted earlier, each share of Mandatory Convertible Preferred Stock will convert automatically on December 15, 2017, into between 1.6119 and 1.9342 shares of T-Mobile’s common stock, subject to customary anti-dilution adjustments, depending on the market value of T-Mobile’s common stock on that date. Dividends on the Mandatory Convertible Preferred Stock will be payable on a cumulative basis when, as and if declared by T-Mobile’s Board of Directors, at an annual rate of 5.50% on the liquidation preference of $50.00 per share, on March 15, June 15, September 15 and December 15 of each year, commencing on March 15, 2015 and to, and including, December 15, 2017.”

Following news of T-Mobile’s pricing, the stock market responded positively. TMUS is now 0.39% up at time of writing.

Screen Shot 2014-12-10 at 14.49.39


For those Wall Street/Stock market nerds among you, the link to T-Mobile’s announcement is below.

Source: T-Mobile

Tags: , , , , ,