© Photographer: Bloomberg/Bloomberg
FILE: Shoppers walk through the lobby of a T-Mobile US Inc. store in Chicago, Illinois, U.S., on Friday, Oct. 21, 2016. T-Mobile US Inc. agreed to acquire Sprint Corp. for $26.5 billion in stock, a wager that the carriers can team up to build a next-generation wireless network and get a jump on industry leaders Verizon Communications Inc. and AT&T Inc. Our editors select the best archive images from the two companies.
(Bloomberg) -- T-Mobile US Inc. is borrowing as much as $2 billion as the mobile carrier engages in an expensive battle to buy more spectrum assets.
The company will issue the debt in three parts, maturing as late as 2031, according to a statement Monday. The proceeds will be used for general corporate purposes, which may include financing acquisitions of additional spectrum and refinancing debt.
Communications providers are amping up their bids in a 5G airwaves auction in the U.S., which may see T-Mobile's peers such as Verizon Communications Inc. and AT&T Inc. tap the debt markets as well. The auction -- which still has several more rounds of bidding ahead -- has now surged past $80 billion, well above analysts' estimates of $47 billion.
© Photographer: Bloomberg/Bloomberg
FILE: Shoppers walk through the lobby of a T-Mobile US Inc. store in Chicago, Illinois, U.S., on Friday, Oct. 21, 2016. T-Mobile US Inc. agreed to acquire Sprint Corp. for $26.5 billion in stock, a wager that the carriers can team up to build a next-generation wireless network and get a jump on industry leaders Verizon Communications Inc. and AT&T Inc. Our editors select the best archive images from the two companies.
Read more from Bloomberg Intelligence: AT&T, Verizon May Tap Bond Market as C-Band Bids Hit $70 Billion
The frenzy underscores how crucial these midband frequencies are to companies trying to seize global leadership in emerging 5G technology. The airwaves are expected to drive a yearslong surge of profits when deployed for next-generation mobile devices, autonomous vehicles, health-care equipment and manufacturing facilities.
Deutsche Bank AG, Citigroup Inc., Credit Suisse Group AG, Goldman Sachs Group Inc., Barclays Plc, JPMorgan Chase & Co. and Morgan Stanley are managing the bond sale, according to a person with knowledge of the matter, who asked not to be identified as the details are private.
T-Mobile shares were little changed in New York trading Monday. They gained 72% last year, compared with a loss of 4.3% for Verizon and a 26% skid for AT&T.
(Updates with shares in final paragraph.)
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