T-Mobile Sells $19 Billion In Bonds to Pay For the Wedding

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Now that T-Mobile US Inc. and Sprint have made it official, the new “un-carrier” announced the sale of $19 billion of bonds on Thursday to help finance the acquisition. Bloomberg reported T-Mobile’s banks took on $23 billion of debt to finance the deal. The merger, which was completed on April 1, drove T-Mobile to begin marketing for what’s estimated to be another $10 billion bond sale.

The proceeds from the bond sale are expected to help refinance a $19 billion bridge loan, likely eliminating the need to raise additional funds, according to Bloomberg. T-Mobile sold investment-grade, senior secured bonds in five phases. One part included a 30-year security, which will yield 3.25 percentage points above Treasuries.

After the $19 billion bridge loan is repaid with proceeds from the bond sale, the lenders will still have a $4 billion seven year-term loan to be syndicated to institutional investors.

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