Spirit lines up banks for $40bn financing of bid for T-Moble US

US MOBILE operator Sprint has lined up eight banks to finance its proposed purchase of T-Mobile US, edging closer to a deal that would merge the third- and fourth-biggest mobile operators in the country.

The debt package exceeds $40bn (£25.3bn) and includes a bridge loan of roughly $20bn from Japan’s Softbank, as well as a $20bn refinancing of T-Mobile’s existing debt, according to a report on Reuters.

Five global banks – JP Morgan Chase, Goldman Sachs Group, Deutsche Bank, Bank of America Merrill Lynch and Citigroup – have reportedly agreed to finance Sprint’s proposal to acquire T-Mobile US, while Japanese banks Mizuho Financial Group, Bank of Tokyo-Mitsubishi and Sumitomo Mitsui Financial Group are also said to have been approached.

Sprint, majority-owned by Softbank, and T-Mobile owner Deutsche Telekom have agreed to broad terms of a deal, under which Sprint would pay around $40 per share for T-Mobile, valuing the smaller rival at nearly $32bn.

Related articles