T-Mobile shares close higher on Tuesday, company raises $3 billion via debt instruments

T-Mobile US Inc (TMUS) said earlier this week that its direct wholly-owned subsidiary, T-Mobile USA Inc, had agreed to sell $800 million aggregate principal amount of its 2.250% Senior Notes due 2026, $1.100 billion aggregate principal amount of its 3.375% Senior Notes due 2029 and $1.100 billion aggregate principal amount of its 3.500% Senior Notes due 2031 in a private offering.

T-Mobile USA will use the net proceeds from the offering to redeem its 6.000% Senior Notes due 2023, 6.000% Senior Notes due 2024 and 5.125% Senior Notes due 2025 first and then, to refinance other debt.

The note offering is due to close on May 13th, the company said.

T-Mobile shares closed higher for the fifth time in the past ten trading sessions on NASDAQ on Tuesday. The stock went up 1.61% ($2.19) to $138.00, after touching an intraday low at $134.80. The latter has been a price level not seen since May 6th ($132.21).

Shares of T-Mobile US Inc have risen 2.34% so far in 2021 compared with a 10.54% gain for the benchmark index, S&P 500 (SPX).

In 2020, T-Mobile US Inc’s stock went up 71.96%, thus, it outperformed the S&P 500, which registered a 16.26% gain.

Analyst stock price forecast and recommendation

According to CNN Money, at least 24 out of 30 surveyed investment analysts had rated T-Mobile US Inc’s stock as “Buy”, while 3 – as “Hold”. The median price target on the stock stands at $159.50.