T-Mobile lines up second biggest US high-yield deal of year
NEW YORK, Oct 8 (IFR) - T-Mobile nearly doubled the size of its US bond offering Tuesday to USD5.6 billion, which would be the second-largest high-yield deal of the year, according to Thomson Reuters data.
The company upsized the deal from an original USD3.1 billion. It is expected to price later in the day.
Two new tranches were added to the original three-tranche deal via left lead Deutsche Bank and joint bookrunners Citi, Credit Suisse, Goldman Sachs, JP Morgan and Morgan Stanley.
Books close at 3pm.
Price talk has been set at 103 area on the USD1.25bn 5.5-year non-call 1.5-year tranche, 100 area on the USD1.25bn 7.5-year non-call 3.5 and at 98 area on the USD600m 9.5-year non-call 4.5.
The yield-to-worst talk on each tranche is 5.5% area, 6.625% area and 7.125% area respectively.
Two additional tranches maturing in 2020 and 2022 have been added for USD1.25bn a piece. Price talk on those has been set at 101 area and 99 area respectively, with yield-to-worst of 6.25% area and 6.875% area.
The bonds are expected to be rated Ba3/BB.