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Anyone want to do a quick write up for the wall on this proposed transaction? Robert
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It would not surprise me if T-Mobile leases UScellular's used spectrum while converting sites for up to a year. -
Here's the spectrum breakdown by band. There's some 2.5 in there as well. The remaining spectrum is definitely enough to keep running FWA on while finding a buyer, and since the towers aren't conveying with the subs and spectrum there's nothing stopping USCellular from competing with T-Mobile on FWA until Verizon or AT&T decide the spectrum is valuable enough to take off TDS's hands. If they go that route, I wouldn't be surprised if FWA gets rebranded under TDS. -
Transaction Details and Financial Profile T-Mobile will pay approximately $4.4 billion for the assets being acquired from UScellular in the transaction in a combination of cash and up to $2.0 billion of debt to be assumed by T-Mobile through an exchange offer to be made to certain UScellular debtholders prior to closing. To the extent any debtholders do not participate in the exchange, their bonds will continue as obligations of UScellular and the cash portion of the purchase price will be correspondingly increased. Following the closing of the transaction, UScellular will retain ownership of its other spectrum as well as its towers, with T-Mobile entering into a long-term arrangement to lease space on at least 2,100 additional towers being retained. T-Mobile does not expect the transaction to impact the company’s 2024 guidance or 2024 authorized shareholder return program. T-Mobile expects this transaction will yield approximately $1.0 billion in effective total opex and capex annual run rate cost synergies upon integration, with total cost to achieve the integration currently estimated at between $2.2 billion to $2.6 billion. The company plans to reinvest a portion of synergies toward enhancing consumer choice, quality and competition in the wireless industry. The transaction, which is subject to the satisfaction of customary closing conditions and receipt of certain regulatory approvals, is expected to close in mid-2025.
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