Reuters: Sprint, T-Mobile looking to announce deal around August

Sprint (S) has "lined up eight banks" to finance a T-Mobile (TMUS) acquisition, Reuters reports. The companies will reportedly "seek to finalize details of the financing in the coming month so they could announce a merger around August."

The financing includes a $40B+ debt package featuring a ~$20B bridge loan from Sprint parent SoftBank (SFTBF), and a $20B refinancing of T-Mobile's present debt. Sprint currently has $26.6B in net debt, and T-Mobile roughly $9B.

Bloomberg reported on June 4 Sprint and T-Mobile were near a deal valuing the latter at ~$40/share. CNBC reported last Friday the companies had agreed on a $2B breakup fee, and to have the post-merger company (should regulators allow it to exist) go under the T-Mobile name.

S +0.5% AH. TMUS +0.9%.

From other sites
Comments (7)
  • Philip Marlowe
    , contributor
    Comments (1580) | Send Message
    I cannot see how this will be good for consumers. All this debt will have to be repaid by American cell phone users.
    19 Jun 2014, 06:16 PM Reply Like
  • Stingray2016
    , contributor
    Comments (60) | Send Message
    None of these deals are good for consumers. Tell me about one merger or acquisition that truly reduced the cost to consumers. However, I do believe that this deal is good if you are a SFTBY shareholder. And Alibaba is going public soon as well. SFTBY is a monster company with very bright future.
    19 Jun 2014, 06:24 PM Reply Like
  • dharmachakra
    , contributor
    Comments (42) | Send Message
    Sprint: Still circling the drain at an increasing velocity.
    19 Jun 2014, 07:23 PM Reply Like
    , contributor
    Comments (6407) | Send Message
    They may be profitable in 2014.
    23 Jun 2014, 09:06 PM Reply Like
  • BigAppleGuy
    , contributor
    Comments (204) | Send Message
    Their is a unique opportunity here to create a true competitor to VZ and T. I have been a customer of both and like having other choices. Son has very publicly stated he will bring faster speeds with lower prices. Sounds like a rare win-win to me.
    19 Jun 2014, 08:10 PM Reply Like
  • Siwanoy
    , contributor
    Comments (717) | Send Message
    Masayoshi Son is veery good for consumers, as he is a one man competitive wrecking crew of monopoly power. He was responsible for forcing NTT to fiber optic the entire country in his native Japan and provide the service at extremely reasonable prices. Yet his SoftBank remains very profitable.
    19 Jun 2014, 10:11 PM Reply Like
    , contributor
    Comments (6407) | Send Message
    It's about M Son's other holdings that will also benefit Sprint. Especially, Alibaba Holdings.
    22 Jun 2014, 07:49 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs