T‑Mobile US, Inc. (NASDAQ: TMUS) announced a €2.5 billion euro‑denominated senior notes offering through its wholly‑owned subsidiary, T‑Mobile USA. The issuance will comprise €750 million of 3.200% senior notes due 2032, €750 million of 3.625% senior notes due 2035, and €1 billion of 3.900% senior notes due 2038, with a closing scheduled for February 19, 2026. The notes are being underwritten by a consortium that includes Barclays, BNP Paribas, Crédit Agricole, Goldman Sachs, Morgan Stanley, and other major banks, indicating strong market support.
The proceeds will be deployed for general corporate purposes, including share repurchases, dividends, and refinancing of existing indebtedness. The offering aligns with T‑Mobile’s $14.6 billion shareholder return program authorized through December 31, 2026, and provides liquidity to fund ongoing network expansion, AI‑driven services, and other growth initiatives.
T‑Mobile’s recent financial performance underscores the strategic timing of the debt issuance. In the fourth quarter of 2025, the company reported service revenues of $18.7 billion, up 10% year‑over‑year, and net income of $2.1 billion. Core adjusted EBITDA rose to $8.4 billion, and adjusted free cash flow for the year reached $18.0 billion. Management projected 2026 core adjusted EBITDA of $37.0–$37.5 billion and adjusted free cash flow of $18.0–$18.7 billion, reflecting confidence in continued demand for its 5G network and broadband services.
The choice to issue euro‑denominated debt reflects favorable interest‑rate conditions in Europe and provides currency diversification for a company with significant European exposure through its parent, Deutsche Telekom. The notes also allow T‑Mobile to refinance existing debt at attractive rates, reducing interest expense and supporting the company’s capital allocation strategy. By raising capital in euros, T‑Mobile can better match its debt profile with its European operations and shareholder base.
Historically, T‑Mobile has issued euro‑denominated debt, but this is the first new tranche in the past year. The offering adds liquidity and represents a material change to the company’s capital structure, enhancing its ability to fund network upgrades, AI initiatives, and shareholder returns without compromising financial flexibility.
The issuance demonstrates T‑Mobile’s disciplined approach to capital management, balancing debt issuance with shareholder value creation and strategic investment in growth areas such as 5G, broadband, and AI‑enabled services. The additional liquidity positions the company to capitalize on market opportunities while maintaining a strong balance sheet.
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