CHICAGO, Nov. 7, 2024 /PRNewswire/ — United States Mobile Company (NYSE: USM) these days has introduced that it has entered into an oath with AT&T (NYSE: T) to promote a portion of the Corporate’s retained spectrum licenses for overall attention of $1.018 billion.  The transaction is a part of the target UScellular introduced on Might 28, 2024, to opportunistically monetize the spectrum that used to be now not integrated within the proposed sale to T-Cellular; and follows the transactions prior to now introduced on October 18, 2024, to promote a portion of the retained spectrum licenses to Verizon and two alternative cell community operators.

“We are pleased with the significant value that will be realized in the various transactions recently announced,” mentioned Laurent C. Therivel, President and CEO.  “This agreement adds a fourth mobile network operator, in addition to T-Mobile, to the list of those whose subscribers will benefit from the sale of our spectrum licenses.  As with the other mobile network operators, we are confident that AT&T can put it to productive use in communities throughout the U.S.  Furthermore, the terms of the agreement will ensure that there will be continued, uninterrupted service for UScellular customers in the interim.” 

Following this transaction, in addition to the ones prior to now introduced, UScellular can have reached definitive words to monetize roughly 55%, gradual on a MHz-Pops foundation, of the spectrum holdings (except for mmWave) that have been excluded from the proposed sale to T-Cellular, for a complete attention of roughly $2.02 billion.  Together with the proposed T-Cellular transaction, UScellular can have reached words to monetize roughly 70% of its overall spectrum holdings (except for mmWave), gradual on a MHz-Pops foundation. 

“After our proposed sales, we will be left with 1.86 billion MHz-Pops of low and mid-band spectrum, as well as 17.2 billion MHz-Pops of mmWave spectrum, with the substantial majority of retained value in the C-band spectrum,” added Therivel.

“The C-band licenses have a number of attributes that we believe are favorable to their long-term value.  First, our C-band licenses are positioned in an attractive mid-band frequency that can deliver outstanding speed and capacity.  Second, there is a substantial 5G ecosystem of equipment vendors and existing infrastructure that uses C-band.  Finally, they have a lengthy build-out timeline, with first and second build-out dates of 2029 and 2033, respectively.  This provides ample time and optionality for us to either monetize or deploy the spectrum in the future.  We will continue to look for ways to opportunistically monetize the C-band, as well as the other remaining spectrum.”

Transaction Main points
The oath with AT&T contains the sale of one,250 million MHz-Pops of three.45 GHz and 331 million MHz-Pops of 700 MHz B/C stop licenses for a complete of $1.018 billion.  The acquisition worth is payable in money and matter to sure possible changes, as specified within the acquire oath. 

Considerably all the transaction is contingent upon the utmost of the sale of the UScellular wi-fi operations and make a choice spectrum belongings to T-Cellular and is matter to the receipt of regulatory approvals and delight of standard utmost statuses.

One of the crucial licenses being offered to AT&T are owned by means of a 3rd celebration.  Their sale to AT&T is contingent upon UScellular’s acquire, which is pending receipt of regulatory favor, of the fairness within the 3rd celebration that UScellular does now not lately personal.  The ones licenses preserve roughly 15% of the full MHz-Pops represented within the introduced transaction.

Alternative Transaction Main points
TDS, in its position because the 83 p.c shareholder of UScellular, has delivered its written consent approving the AT&T transaction.  Incorrect additional motion by means of UScellular’s shareholders shall be wanted or solicited in reference to the transaction.

Advisors
Citigroup World Markets Inc. is serving as manage monetary guide and Centerview Companions LLC is serving as monetary guide to TDS.  TD Securities (USA) LLC and Wells Fargo also are serving as monetary advisors to TDS.  Wilkinson Barker Knauer, LLP is serving as manage transactional and FCC regulatory suggest to each TDS and UScellular.  As well as, Clifford Anticipation LLP is serving as regulatory guide to each TDS and UScellular and Sidley Austin LLP is serving as felony guide to TDS.  PJT Companions LP is serving as monetary guide and Cravath, Swaine & Moore LLP is serving as felony guide to the isolated administrators of UScellular.

About UScellular
United States Mobile Company supplies a complete length of wi-fi services and products, magnificient buyer backup, and a high quality community to consumers with 4.5 million retail connections in 21 states. The Chicago-based corporate had 4,200 full- and part-time friends as of September 30, 2024. On the finish of the 3rd quarter of 2024, Phone and Knowledge Techniques, Inc. owned roughly 83 p.c of UScellular. For more info about UScellular, consult with uscellular.com.

Safeguard Harbor Remark Underneath the Personal Securities Litigation Reform Occupation of 1995: All data i’m ready forth on this information let fall, excluding historic and factual data, represents forward-looking statements. This contains all statements in regards to the corporate’s plans, ideals, estimates, and expectancies. Those statements are in line with stream estimates, projections, and guesses, which contain sure dangers and uncertainties that would motive original effects to range materially from the ones within the forward-looking statements. Noteceable components that can impact those forward-looking statements come with, however don’t seem to be restricted to: whether or not the prior to now introduced transaction wherein UScellular has correct to promote its wi-fi operations and decided on spectrum belongings to T-Cellular shall be effectively finished or whether or not UScellular will be capable of to find patrons at mutually agreeable costs for its extra spectrum belongings; whether or not the prior to now introduced transaction with Verizon shall be effectively finished; whether or not the transactions introduced these days with AT&T shall be effectively finished; whether or not those transactions can have an adversarial have an effect on on UScellular’s industry; and alternative dangers and uncertainties which can be extra absolutely described underneath “Risk Factors” in the latest submitting of UScellular’s Mode 10-Ok, as up to date by means of any UScellular Mode 10-Q filed next to such Mode 10-Ok.

For more info about UScellular, consult with: www.uscellular.com

SOURCE United States Mobile Company

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