T-Mobile issues $2B senior notes and debuts $140/month family plan with price guarantee
T-Mobile USA sold $1.15B of 5.000% senior notes due 2036 and $850M of 5.850% senior notes due 2056 in a registered public offering. T-Mobile launched its Better Value plan at $140/month for three lines with unlimited 5G data, a five-year price guarantee, delivering over $1,000 savings versus AT&T and Verizon.
1. T-Mobile Sells $2 Billion of Senior Notes
T-Mobile USA, Inc., a direct wholly-owned subsidiary of T-Mobile US, Inc., has successfully priced a registered public offering of $2.0 billion aggregate principal amount of senior notes. The offering consists of $1.15 billion of 5.000% Senior Notes due 2036 and $850 million of 5.850% Senior Notes due 2056. Proceeds will be used primarily to refinance existing debt on an ongoing basis and for general corporate purposes. Joint book-running managers on the deal include Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC and UBS Investment Bank. The transaction solidifies the company’s debt maturity profile and locks in long-term financing at attractive rates.
2. T-Mobile Launches ‘Better Value’ Family Plan
Effective January 14, T-Mobile unveiled its new ‘Better Value’ family plan, starting at $140 per month for three lines with AutoPay (approximately $46 per line, plus taxes and fees). The plan offers unlimited premium 5G data, 250 GB of high-speed mobile hotspot data per month, 30 GB of high-speed data in Mexico and Canada, and 30 GB of high-speed data in over 215 countries and destinations (256 kbps thereafter). Subscribers also receive unlimited satellite text and data via optimized apps, Netflix and Hulu on Us, Apple TV for $3 per month, and home internet backup for $10 with AutoPay. T-Mobile estimates families will save over $1,000 annually compared with comparable offerings from AT&T and Verizon, while existing customers upgrading from Essentials with three or more lines can save more than $50 per month. A five-year price guarantee on talk, text and data ensures rate stability through early 2030.