T-Mobile USA amended the terms of its $2 billion secured term loan due January 2022 and its $2 billion secured term loan due January 2024. Deutsche Bank, New York Branch acted as both administrative and collateral agent on the transaction, while Deutsche Telekom (DT) acted as lender.
According to a related 8-K filing, the company also amended its $1.5 billion secured revolving credit facility (RCF), with DT acting as administrative agent, collateral agent and lender.
The amendments, among other things,
- Adjusted the applicable margin payable on LIBOR indexed loans to 1.50% under the 2022 term loan and to 1.75% under the 2024 term loan
- Adjusted the range of applicable margin payable under the secured RCF to 1.05% to 1.80%
- Adjusted the undrawn commitment fee applicable to the secured RCF to 0.25% to 0.45%
- Extended the maturity date of the RCF to December 29, 2020
The amendments also modified the facility governing the term loans to (a) include a soft-call prepayment premium of 1.00% of the outstanding principal amount of the term loans payable to DT upon certain refinancings with lower priced debt prior to six months after March 29, 2018 and (b) update certain covenants and other provisions to make them substantially consistent, subject to certain additional carveouts, with T-Mobile’s most recently publicly issued bonds.
DT is the company’s majority stockholder and a holder of a portion of T-Mobile’s outstanding debt.