8-KMaterial AgreementsExhibits & Filings

T-Mobile US, Inc. 8-K Report, Material Agreement (Nov 2, 2016)

Filed November 2, 2016For Securities:TMUSTMUSZTMUSITMUSL

Summary

T-Mobile US, Inc. (TMUS) announced on November 1, 2016, the extension of commitment periods for $4 billion in note purchase facilities provided by its majority stockholder, Deutsche Telekom AG (DT). These facilities, originally set to expire in November 2016, have been extended through May 2017. This extension is a significant positive development for the company, as it estimates potential monthly interest savings of up to $17 million during the extended commitment period. The Company is not required to pay any commitment fees to DT for this extension, although it will reimburse DT for hedging costs estimated at approximately $2 million per month. The extended facilities are tied to the purchase of T-Mobile USA's Senior Notes, specifically $1.35 billion of 6.000% Senior Notes due 2024 under an April 25, 2016 agreement, $650 million of 6.000% Senior Notes due 2024 under an April 29, 2016 agreement, and $2 billion of 5.300% Senior Notes due 2021 under a March 6, 2016 agreement. T-Mobile USA can exercise these commitments until May 5, 2017, with the latest issuance date being May 31, 2017. This strategic move underscores T-Mobile's ability to secure favorable financing terms through its relationship with its parent company, providing financial flexibility and cost savings.

Key Highlights

  • 1Extended commitment periods for $4 billion in note purchase facilities provided by Deutsche Telekom AG (DT).
  • 2Commitment periods extended from November 2016 through May 2017.
  • 3Estimated monthly interest savings of up to $17 million for the duration of the extended commitments.
  • 4No commitment fees or other compensation are payable to DT for the extension.
  • 5T-Mobile USA will reimburse DT for hedging costs, estimated at $2 million per month.
  • 6The extended facilities relate to T-Mobile USA's Senior Notes due 2021 and 2024.
  • 7T-Mobile USA can exercise commitments until May 5, 2017, with a latest issuance date of May 31, 2017.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce the material definitive agreement to extend the commitment periods for $4 billion of note purchase facilities provided by Deutsche Telekom AG (DT).

The extension is estimated to result in monthly interest savings of up to $17 million for T-Mobile. Additionally, the company is not required to pay any commitment fees for this extension.

Yes, T-Mobile USA is required to reimburse Deutsche Telekom AG for its costs related to hedging arrangements for these extended commitments, which are estimated to be approximately $2 million per month.

The extension applies to three note purchase agreements with DT: one for $1.35 billion of 6.000% Senior Notes due 2024, another for $650 million of 6.000% Senior Notes due 2024, and a third for $2 billion of 5.300% Senior Notes due 2021.