T-Mobile USA entered into a new three-year $2.5 billion revolving credit facility and amended its $660 million secured term loan facility with Deutsche Telekom, its majority stockholder.

The new revolver replaces T-Mobile’s $500 million unsecured revolving credit facility dated May 1, 2013 with JPMorgan Chase as administrative agent and Deutsche Telekom as lender.

The revolver is intended to serve as the company’s primary source for its short-term liquidity needs and is available to be drawn from time to time subject to certain limited and customary draw conditions. The revolver is comprised of a three-year $1 billion senior unsecured revolving credit agreement with Deutsche Telekom, as administrative agent and lender and a three-year $1.5 billion senior secured revolving credit agreement with Deutsche Telekom as administrative agent, collateral agent and lender.

Interest on outstanding borrowings and commitment fees is based on the company’s leverage profile, which will be determined on a quarterly basis in accordance with a debt to cash flow ratio similar to the leverage test included in the existing secured term credit facility. The interest rate on borrowings under the secured revolving credit facility is the Eurodollar Rate plus an applicable margin ranging from 1.00% to 1.75% per annum for Eurodollar Rate loans. The commitment fee for the secured revolving credit facility will be 0.25% per annum.

The revolver will have the benefit of guarantees from the same entities that are guarantors under the company’s existing secured term credit facility. The obligations of T-Mobile and the guarantors under the secured revolver are secured by a first priority lien on substantially all of T-Mobile USA’s assets.

The term loan facility is provided under an amendment with Deutsche Bank as administrative agent and Deutsche Telekom as the initial incremental term loan lender, which amends an agreement dated November 9, 2015 for a $660 million incremental term loan. Subject to certain customary closing conditions, T-Mobile will draw the $660 million incremental term loan on January 31, 2017 as an additional tranche of term loans under the existing secured term loan facility.

The loan, if issued under the incremental secured term loan facility, will bear interest at a rate equal to a per annum rate of LIBOR plus a margin of 2.50%. There is no LIBOR floor under the incremental secured term loan facility.