T-Mobile US is looking to bolster its coffers ahead of scheduled spectrum auctions, announcing this week that it plans to offer 66.15 million shares of its common stock in a public offering. T-Mobile US’ did not put a value yet on the stock if planned to offer, but the carrier’s stock (TMUS) was trading around $26 per share early Tuesday, which would value the offering at more than $1.7 billion.
T-Mobile US said it plans to use proceeds from the offering “for general corporate purposes, including capital investments, enhancing its financial flexibility and opportunistically acquiring additional spectrum in private party transactions and/or government auctions.” T-Mobile US has already expressed interest in participating in the Federal Communications Commission planned 600 MHz incentive auction process expected to begin in late 2014 or early 2015, with a pair of additional spectrum auctions including licenses in the 1.7/2.1 GHz band and 1.9 GHz band also set to take place next year.
The timing of the offering looks to be ideal for the carrier as it’s coming off yet another strong quarter in which the nation’s No. 4 carrier posted operational results matching those of its larger rivals. Industry observers have noted that T-Mobile US has in many ways been outperforming AT&T Mobility, which just a few years ago was on the verge of acquiring T-Mobile USA for $39 billion.
T-Mobile US earlier this year completed its acquisition of MetroPCS, which resulted in German telecom giant Deutsche Telekom cutting its stake in T-Mobile US to 74%.
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