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Mega Deals

02 April 2020 by jbchevrel

The headline *T-MOBILE SETS SIZE OF FIVE-PART BOND SALE AT $19 BILLION hit the wires, after our European London close. This is huuuge. For context, TMUS had already received strong investor interest for their bond offering. Investors had placed more than $30 billion of orders for this highly-anticipated bond sale, which TMUS had started marketing nearly a year ago. The reason for the delay was that TMUS and S had to clear several regulatory hurdles in order to close this mega deal, then further complicated by the Covid-19 thing. Earlier today, BBG had reported that it may total $10 billion. This deal is of course to help finance its acquisition of Sprint Corp (S). The merger was formally completed just yesterday morning. The proceeds will help refinance a $19 billion bridge loan, while the remainder may be funded through bonds denominated in other currencies including euros. Before that news we had closed (on our European London close) TMUS 5y CDS unchanged on the day at 210bp mid and 195bp on S (was already -30 on day). Now the mid seems closer to 205bp on TMUS and 182bp on S (tighter -43 on day).