Deutsche Telekom offers T-Mobile USA bonds worth $3.1 billion

Tue Oct 8, 2013 2:56pm EDT
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FRANKFURT (Reuters) - Deutsche Telekom said on Tuesday it is offering for sale a portion of the T-Mobile USA bonds from its holdings worth $3.1 billion.

The company said it would offer two series of $1.25 billion each and one of $600 million.

"The proceeds of the sale of the bonds will serve Deutsche Telekom's general corporate purposes," the company said in a statement.

Deutsche Telekom said it would offer $1.25 billion worth of senior notes due in 2019 and another portion of $1.25 billion notes, which are due in 2021.

The remaining $600 million notes are due in 2023.

The notes are part of the deal to buy MetroPCS, which Deutsche Telekom combined with its T-Mobile USA unit.

As part of the transaction Deutsche Telekom provided T-Mobile USA, with debt capital in the form of bonds totaling $11.2 billion.

Credit analysts have warned that Deutsche Telekom should sell some of that debt to the market to maintain its current credit profile.

(Reporting by Harro ten Wolde; Editing by Peter Dinkloh and Louise Heavens)

The logo of Deutsche Telekom is pictured on the 266 metre high "Colonia" TV tower in the western German city of Cologne March 25, 2013. REUTERS/Wolfgang Rattay