Wednesday, December 10, 2014

$1 Billion for T-Mobile


Monday night, T-Mobile registered to offer 20 million shares of mandatory convertible preferred shares at $50/share that could result in equity dilution up to 4.5%, according to Colby Synesael at Cowen and Company. The company is looking to raise $1 billion. Synesael wrote in a research note that the firm wasn’t thrilled by the raise but understood why the company made the decision. T-Mobile recently acquired bands of 700MHz spectrum and the net proceeds from the stock will go towards general corporate purposes, including capital investments, and spectrum acquisitions unrelated to the AWS-3 auction. Continue reading here

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