T-Mobile US, Dish Network and Amazon each announced new debt offerings today (10 May), moving to capitalise on a reduction in US interest rates.
The US operator explained it will refinance higher-rate debt with lower, and extend debt maturities, with some of its notes now coming due as late as 2031.
T-Mobile’s move involves refinancing 6 per cent senior notes due in 2023 and 2024 by issuing senior notes at 2.25 per cent due in 2026, 3.375 per cent (2029) and 3.5 per cent (2031).
Dish Network detailed an issue of $1.25 billion in senior notes by its DISH DBS subsidiary, which will be used for “general corporate purposes, including refinancing of indebtedness”.
Amazon, which had $34 billion in cash on its balance sheet at end-March, raised another $18.5 billion in the debt market, Bloomberg reported.
Amazon has been spending aggressively during recent months, as the Covid-19 (coronavirus) pandemic boosted demand for cloud computing services offered by its AWS unit.
The company also made a deal with Dish Network to host its 5G core network and is expected to invest in new Amazon Outpost edge infrastructure for the operator’s network.Subscribe to our daily newsletter Back