T-Mobile US Inc., the fourth-largest U.S. wireless carrier, raised $500 million in senior notes in its first debt offering after merging with MetroPCS Communications Inc.
The company issued through its T-Mobile USA unit 5.25 percent bonds due September 2018 to yield 378 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg. The securities are rated Ba3 by Moody’s Investors Service, three levels below investment grade. Proceeds will be used for general corporate purposes, the Bellevue, Washington company said in a statement today.
T-Mobile, controlled by Deutsche Telekom AG, completed its merger with pay-as-you-go carrier MetroPCS in May. The average extra yield investors demand to hold the debt of speculative-grade telecommunications companies instead of similar-maturity Treasuries is 427 basis points, Bank of America Merrill Lynch index data show.
Deutsche Bank AG managed T-Mobile’s sale, Bloomberg data show.