Telephone And Data Systems, Inc. · NYSE:TDS
Telephone And Data Systems — Merger or Acquisition (May 2024)
13 slides from Telephone And Data Systems's merger presentation, May 28, 2024
Slide 1: Sale of Wireless Operations and Select Spectrum Assets
May 28, 2024 Sale of Wireless Operations and Select Spectrum Assets
Slide 2: Forward-Looking Statements
Forward-Looking Statements Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this presentation, except historical and factual information, represents forward-looking statements. This includes all statements about the company’s plans, belie
Slide 3: Call Participants
3 Call Participants Laurent “LT” Therivel President and Chief Executive Officer, UScellular Doug Chambers Executive Vice President, Chief Financial Officer and Treasurer, UScellular Vicki Villacrez Executive Vice President and Chief Financial Officer, TDS Contains UScellular confidential information
Slide 4: Transaction Overview
Transaction Overview • Sale of wireless operations and select spectrum assets to T-Mobile for $4.4 billion purchase price – Payable in a combination of cash and up to $2 billion in assumed debt • Wireless operations include: subscribers, network assets and operations (excluding owned towers), sales
Slide 5: Transaction Delivers Significant Benefits to Customers
Transaction Delivers Significant Benefits to Customers Lower Prices Better Network Increased Rural More Choices Experience Coverage Access to T-Mobile’s UScellular customers will “Un-carrier” benefits Customers will get a Significantly expands have the opportunity to superior performance coverage ac
Slide 6: Unlocking Value for All Stakeholders – "What's Staying"
Unlocking Value for All Stakeholders – “What’s Staying” Transformed Tower Equity Method Retained Spectrum Business Investment Interests UScellular retains a Long-term MLA with T-Mobile Retained equity method majority of existing + Existing third-party investment interests wireless spectrum portfolio
Slide 7: UScellular is Retaining ~70% of its Spectrum Portfolio
UScellular is Retaining ~70% of its Spectrum Portfolio Spectrum 4,161mm MHz POPs(3) • T-Mobile to acquire bands of Low & Mid-Band MHz POPs (1) UScellular’s spectrum that most seamlessly integrate into their Band MHz POPs existing network 700 MHz (A Block) (30%) 133 700 MHz (B/C Block) 333 Cellular •
Slide 8: A Transformed UScellular Tower Business
A Transformed UScellular Tower Business Current Tower Revenue Post-Transaction Tower Details Distribution(1) • T-Mobile to become a long-term tenant on a minimum of 2,015(2) incremental towers with expected minimum incremental cash rentals of (as of 4Q’23) $56 million in the first full year post-clo
Slide 9: UScellular Shareholders to Continue to Benefit from Cash Flows from Equity Method Investment Interests
UScellular Shareholders to Continue to Benefit from Cash Flows from Equity Method Investment Interests • UScellular to retain its non-operating equity method investment interests that generated $158 million of equity method income and $150 million in distributions in 2023 • Equity method investments
Slide 10: Exchange Offer for UScellular Debt Holders
Exchange Offer for UScellular Debt Holders T-Mobile to conduct exchange offer at par under which debt holders of the following UScellular debt will have the choice to exchange their UScellular debt for T-Mobile debt with the same coupon, maturity, and principal value Principal Value Exchangeable Not
Slide 11: TDS Fully Supports the Transaction
TDS Fully Supports the Transaction TDS remains committed to bringing connectivity to communities across the United States • Successful outcome creates significant value for UScellular and TDS stakeholders • Potential return of capital to UScellular shareholders (including TDS) would: • Enhance fundi
Slide 12: Q&A
Q&A
Slide 13: 3< uscellular
3< uscellular Contains UScellular confidential information Not for external use or disclosure without proper authorization,
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