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Sprint Lines Up Banks for T-Mobile Takeover Bid

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USA based Sprint is reported to have lined up eight banks to arrange USD20 billion worth of debt funding for its expected takeover bid for T Mobile USA.

That is on top of a shareholder loan of USD20 billion from its majority shareholder, Japan's Softbank.

The funding would cover the estimated USD32 billion cost of the takeover bid, plus refinancing of T-Mobile's debt.

The Reuters news agency named the banks lining up the initial US$20 billion of lending as JP Morgan Chase, Goldman Sachs Group, Deutsche Bank, Bank of America Merrill Lynch and Citigroup. In addition, Japanese banks Mizuho Financial Group, Bank of Tokyo-Mitsubishi and Sumitomo Mitsui Financial Group are also said to have been approached.

It is generally thought that Sprint and T-Mobile have agreed to the merger/takeover and are just finalising the break-up fee if regulators block the deal, and some issues about the location of the headquarters and related internal affairs.

Germany's Deutsche Telekom which owns the majority of T-Mobile is said to have agreed to sell its stake, although it may be taking a mixture of cash and shares in the merged company. That cash/shares combination could explain why the debt financing comes to USD40 billion, instead of the USD52 billion that might otherwise have been expected.

On the web: Reuters

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Tags: t-mobile usa  sprint  USA