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T-Mobile Follows Verizon Playbook in Asset-Backed Bond Sale

  • Wireless firm is tapping ABS market for the first time ever
  • Company following in footsteps of regular ABS issuer Verizon
Signage for a T-Mobile store in San Francisco, California, U.S., on Tuesday, March 16, 2021. T-Mobile US Inc. is kicking off a bond sale to help finance the purchase of new high-speed spectrum licenses as carriers roll out the next generation of mobile devices.
Signage for a T-Mobile store in San Francisco, California, U.S., on Tuesday, March 16, 2021. T-Mobile US Inc. is kicking off a bond sale to help finance the purchase of new high-speed spectrum licenses as carriers roll out the next generation of mobile devices.Photographer: David Paul Morris/Bloomberg
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T-Mobile US Inc. sold its first-ever bond backed by customers’ phone loans, a move that helps diversify its funding sources as the company digests its 2020 purchase of rival Sprint Corp.

The telecommunications giant on Tuesday priced its sale of $842 million of asset-backed securities. It issued $750 million to investors at a spread of 90 basis points above the US Treasury interpolated-curve, while the remainder was not offered.