Sprint’s rumored plans to put in an offer for T-Mobile US appear to be moving forward as published reports indicate Sprint parent company Softbank has lined up the necessary financing and is looking to put an official offer on the table sometime in August.
According to Reuters, Softbank has lined up more than $40 billion in debt financing with the help of eight banks. The package includes a $20 billion bridge loan from Softbank to Sprint and the re-financing of $20 billion in T-Mobile US debt. Recent reports had indicated that Sprint’s offer would be somewhere in the neighborhood of $32 billion, or around $40 per share. T-Mobile US’ parent company Deutsche Telekom has reportedly agreed to the terms, though some analysts thought the offer should be closer to $50 per share.
Mosaik Solutions put together a map showing the aggregate spectrum holdings of a combined Sprint/T-Mobile US.
As part of the offer, DT has also reportedly garnered a $2 billion break-up fee should the deal fall apart. DT had previously snared $3 billion in cash and approximately $1 billion in spectrum assets from AT&T following the collapse of AT&T’s $39 billion attempt to acquire T-Mobile USA in 2011.
That break-up fee could be a compelling piece of the puzzle as the Federal Communications Commission has hinted it was happy with the current wireless market of four nationwide operators, and implemented rules for the upcoming 600 MHz incentive auction and updated spectrum screen that any disruption to the current status quo would result in re-visiting of those rules.
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Report: Sprint has funds in place for an August offer for T-Mobile US
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