T-Mobile announced it will offer 17.4 million shares of mandatory convertible preferred stock with a liquidation preference of $50 a share. The underwriters of the option will have a 30-day option to buy an additional 2.6 million shares to cover any overallotments.
The carrier will use the net proceeds from the offering for general corporate purposes which include capital investments, and the acquisition of additional spectrum aside from the spectrum it may obtain in the FCC's pending AWS-3 spectrum auction.
Must Read: Warren Buffett's 25 Favorite Stocks
TheStreet Ratings team rates T-MOBILE US INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate T-MOBILE US INC (TMUS) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and generally higher debt management risk."