T-Mobile US ‘has funding in place’ to complete Sprint merger

T-Mobile US ‘has funding in place’ to complete Sprint acquisition within days

23 March 2020 | Alan Burkitt-Gray

Cover

Deutsche Telekom’s T-Mobile US appears on target to complete its takeover of SoftBank’s Sprint by the weekend.

When the last legal barriers to the merger lifted in February the companies announced that 1 April was their target completion date.

Now, T-Mobile US has declared its existing financial agreements mean “it is currently financially prepared to close its planned merger with Sprint”. It has been in touch with all 16 banks that are funding the deal.

“I’m pleased that right now we have broad support from the banks to finance the closing of this merger,” said John Legere, CEO of T-Mobile US. “We are very close to unleashing the capabilities of the New T-Mobile, and that is even more important for consumers during the current COVID-19 pandemic.”

Braxton Carter, CFO of T-Mobile US, said: “We are very happy to have assembled sixteen leading US and global banks in our committed bridge financing for the acquisition of Sprint. This diversification of banks, and the spreading of the committed bridge financing creates a very high-quality bridge.”

Mike Sievert (pictured), president and COO, but in line to take over from Legere as CEO on 1 May, said: “In times when consumers need affordable service plans to stay connected, T-Mobile is fully prepared and well positioned to be the provider to meet these needs. In fact, after we close the merger, the New T-Mobile may be the best positioned company to serve them, as more and more consumers seek value in these uncertain times. We’re here for our community of consumers who count on us.”

The merger will see Deutsche Telekom in effective control of the combined company, controlling more than 69% of the shares: early on in the process, SoftBank gave Deutsche Telekom a proxy for the shares the Japanese company will own in the new T-Mobile US. The original agreement was adjusted last month to reflect Sprint’s declining value.

Legere noted: “Our nation is more dependent than ever on connectivity, and we will continue to deliver our essential wireless service today and when we merge with Sprint, with a nationwide 5G service that is broader and more robust than anything else in America. We can see the finish line and are prepared to close the merger very soon so our teams can get to work building a supercharged Un-carrier.”