T-Mobile Drops on Secondary Offering

NEW YORK ( TheStreet) -- T-Mobile USA ( TMUS) shares slumped 2.4% to $26.33 after the company announced it would be selling an additional 66.2 million shares to help build out its network.

"T-Mobile expects to use the net proceeds from this offering for general corporate purposes, including capital investments, enhancing its financial flexibility and opportunistically acquiring additional spectrum in private party transactions and/or government auctions," the company said in the filing. "T-Mobile intends to grant the underwriters in this offering the option to purchase up to an additional 6,615,000 shares of its common stock."

Morgan Stanley, Goldman Sachs, JPMorgan, Credit Suisse and Deutsche Bank are managing the offering.

Shares of T-Mobile closed lower in Monday trading, off 2.6% to $26.97.

-- Written by Chris Ciaccia in New York

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