T-Mobile to Borrow Up to $2 Billion in Heated Spectrum Bid

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T-Mobile US Inc. is borrowing as much as $2 billion as the mobile carrier engages in an expensive battle to buy more spectrum assets.

The company willissue the debt in three parts, maturing as late as 2031, according to astatement Monday. The proceeds will be used for general corporate purposes, which may include financing acquisitions of additional spectrum and refinancing debt.

Communications providers are amping up theirbids in a 5G airwaves auction in the U.S., which may see T-Mobile’s peers such asVerizon Communications Inc. andAT&T Inc. tap the debt markets as well. The auction — which still has several more rounds of bidding ahead — has now surged past$80 billion, well above analysts’ estimates of $47 billion.

Read more from Bloomberg Intelligence: AT&T, Verizon May Tap Bond Market as C-Band Bids Hit $70 Billion

The frenzy underscores how crucial these midband frequencies are to companies trying to seizeglobal leadership in emerging 5G technology. The airwaves are expected to drive a yearslong surge of profits when deployed for next-generation mobile devices, autonomous vehicles, health-care equipment and manufacturing facilities.

Deutsche Bank AG, Citigroup Inc., Credit Suisse Group AG, Goldman Sachs Group Inc., Barclays Plc, JPMorgan Chase & Co. and Morgan Stanley aremanaging the bond sale, according to a person with knowledge of the matter, who asked not to be identified as the details are private.

— With assistance by Gowri Gurumurthy

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