UScellular Announces Expected Amount of Special Dividend
UScellular (NYSE:TDS) has announced plans for a significant special cash dividend of $22.50 - $23.75 per share, totaling approximately $1.950 billion - $2.075 billion. The dividend is contingent upon closing the sale of the company's wireless operations and select spectrum assets to T-Mobile US, Inc.
The company provided a detailed reconciliation of the $4.4 billion gross purchase price, accounting for various deductions including $1.665 billion in senior notes assumption, $865 million in term loan repayments, and other adjustments. Post-transaction, the company will rebrand as Array Digital Infrastructure, Inc., with Doug Chambers serving as interim CEO.
Telephone and Data Systems (TDS), which owns approximately 81% of UScellular, will receive its pro-rata share of the special dividend.
UScellular (NYSE:TDS) ha annunciato l'intenzione di distribuire un significativo dividendo speciale in contanti di 22,50 - 23,75 dollari per azione, per un totale di circa 1,95 - 2,075 miliardi di dollari. Il dividendo dipende dalla conclusione della vendita delle operazioni wireless dell'azienda e di alcune frequenze selezionate a T-Mobile US, Inc.
L'azienda ha fornito una riconciliazione dettagliata del prezzo lordo di acquisto di 4,4 miliardi di dollari, considerando varie detrazioni tra cui l'assunzione di 1,665 miliardi di dollari in obbligazioni senior, il rimborso di 865 milioni di dollari di prestiti a termine e altri aggiustamenti. Dopo la transazione, la società cambierà nome in Array Digital Infrastructure, Inc., con Doug Chambers come CEO ad interim.
Telephone and Data Systems (TDS), che detiene circa il 81% di UScellular, riceverà la sua quota proporzionale del dividendo speciale.
UScellular (NYSE:TDS) ha anunciado planes para un dividendo especial en efectivo significativo de 22,50 - 23,75 dólares por acción, totalizando aproximadamente 1.950 a 2.075 millones de dólares. El dividendo está condicionado a la finalización de la venta de las operaciones inalámbricas de la compañía y ciertos activos de espectro a T-Mobile US, Inc.
La empresa proporcionó una conciliación detallada del precio bruto de compra de 4.400 millones de dólares, considerando diversas deducciones, incluyendo la asunción de 1.665 millones de dólares en notas senior, el pago de 865 millones de dólares en préstamos a término y otros ajustes. Tras la transacción, la compañía cambiará su nombre a Array Digital Infrastructure, Inc., con Doug Chambers como CEO interino.
Telephone and Data Systems (TDS), que posee aproximadamente el 81% de UScellular, recibirá su parte proporcional del dividendo especial.
UScellular (NYSE:TDS)는 주당 22.50 - 23.75달러의 특별 현금 배당을 계획하고 있으며, 총액은 약 19.5억 - 20.75억 달러에 달합니다. 이 배당금은 회사의 무선 사업 및 일부 스펙트럼 자산을 T-Mobile US, Inc.에 매각하는 거래가 완료되는 것을 조건으로 합니다.
회사는 44억 달러의 총 매입 가격에 대한 상세한 조정을 제공했으며, 여기에는 16.65억 달러의 선순위 채권 인수, 8.65억 달러의 기간 대출 상환 및 기타 조정이 포함됩니다. 거래 완료 후 회사는 Array Digital Infrastructure, Inc.로 사명을 변경하며, Doug Chambers가 임시 CEO를 맡게 됩니다.
UScellular의 약 81%를 소유한 Telephone and Data Systems (TDS)는 특별 배당금의 비례 지분을 받게 됩니다.
UScellular (NYSE:TDS) a annoncé un dividende spécial en espèces important de 22,50 à 23,75 dollars par action, totalisant environ 1,95 à 2,075 milliards de dollars. Ce dividende est conditionné à la finalisation de la vente des opérations sans fil de la société et de certains actifs de spectre à T-Mobile US, Inc.
L'entreprise a fourni une réconciliation détaillée du prix d'achat brut de 4,4 milliards de dollars, tenant compte de diverses déductions, notamment l'assumption de 1,665 milliard de dollars en obligations senior, le remboursement de 865 millions de dollars de prêts à terme et d'autres ajustements. Après la transaction, la société sera rebaptisée Array Digital Infrastructure, Inc., avec Doug Chambers en tant que PDG par intérim.
Telephone and Data Systems (TDS), qui détient environ 81% d'UScellular, recevra sa part proportionnelle du dividende spécial.
UScellular (NYSE:TDS) hat Pläne für eine bedeutende Sonderbar-Dividende von 22,50 - 23,75 USD pro Aktie angekündigt, insgesamt etwa 1,95 bis 2,075 Milliarden USD. Die Dividende hängt vom Abschluss des Verkaufs der drahtlosen Geschäftsbereiche und ausgewählter Spektrum-Assets an T-Mobile US, Inc. ab.
Das Unternehmen legte eine detaillierte Abstimmung des Brutto-Kaufpreises von 4,4 Milliarden USD vor, wobei verschiedene Abzüge berücksichtigt wurden, darunter die Übernahme von 1,665 Milliarden USD an Senior Notes, die Rückzahlung von 865 Millionen USD Terminkrediten und weitere Anpassungen. Nach der Transaktion wird das Unternehmen in Array Digital Infrastructure, Inc. umbenannt, mit Doug Chambers als interimistischem CEO.
Telephone and Data Systems (TDS), das etwa 81% von UScellular besitzt, erhält seinen anteiligen Anteil an der Sonderdividende.
- Substantial special dividend of $22.50-$23.75 per share to be distributed to shareholders
- Potential for several additional special dividends following announced transactions
- Company will maintain ample post-closing liquidity and financial flexibility
- $4.4 billion gross purchase price from T-Mobile transaction
- Strategic repositioning with new brand identity as Array Digital Infrastructure
- Significant reduction in business size and operational scope post-sale
- Various substantial deductions from gross purchase price including $1.665B in senior notes and $865M in term loans
- Cash obligations to employees estimated at $150-200 million
- Tax obligation of approximately $275 million reducing available distribution
Expects to issue special dividend of
Contingent on closing the sale of the wireless operations and subject to board approval
"We are pleased to provide additional clarity on the expected special dividend to UScellular shareholders, subject to the approval of the Board of Directors and contingent on the closing of the T-Mobile transaction. We expect this to be the first of potentially several special dividends issued to shareholders as a result of our announced transactions," said Laurent Therivel, UScellular President and CEO. "We believe that payment of a dividend in this approximate amount will leave the post-closing business with ample liquidity and financial flexibility to meet capital requirements and general business needs for the foreseeable future."
Additional Details of Cash Available for Distribution
The following table provides a reconciliation between the gross purchase price and the expected net cash available for distribution following the expected close of the T-Mobile transaction. Certain amounts in this table are estimates:
Dollars in millions | |
Gross purchase price (1) | |
Contingent purchase price adjustment | (90) |
Estimated amount of senior notes assumed in exchange offer | (1,665) |
Repayment of term loans | (865) |
Proceeds from new term loan | 320 |
UScellular cash tax obligation | (275) |
Cash obligations to employees | (150 - (200) |
Other adjustments, proceeds, and costs, net | (25) - (100) |
Cash (2) | 425 |
Net cash available for distribution |
- Expected proceeds at closing include
$400 million - Excess cash - Represents a substantial majority of cash on hand at the beginning of 2025 and cash generated by UScellular's business in 2025. UScellular's remaining business, after sale of its wireless operations, will have a significantly different financial and operational profile, and is also significantly smaller in size. Accordingly, the cash balance required to operate and meet the working capital and investment needs of the remaining business is expected to be substantially less than the corresponding cash balance required to operate UScellular's legacy business that includes its wireless operations. Such excess cash is included in the amount available for payment of the expected special dividend.
Telephone and Data Systems, Inc. (NYSE:TDS), which is expected to own approximately
Additional Developments - In a separate press release issued today, UScellular announced two additional developments that are also subject to the closing of the sale of the wireless operations. First, upon closing, the Company intends to change its name to Array Digital Infrastructure, Inc. Second, Doug Chambers will serve as interim CEO of the post-closing Array business. For more information, please refer to the press release which can be accessed on the Company's website.
About UScellular
United States Cellular Corporation provides a comprehensive range of wireless products and services, excellent customer support, and a high-quality network to customers with 4.4 million retail connections in 21 states. The
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes statements regarding the amount of the expected dividend to be paid following the expected closing of the T-Mobile transaction and statements regarding the various items shown above that impact the calculation of that expected dividend. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include but are not limited to: whether the announced transactions whereby UScellular has agreed to sell its wireless operations and selected spectrum assets will be successfully completed, whether the USCC Board will elect to declare the dividend and whether an unexpected development will arise that impacts the cash currently expected to be available following the closing. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under "Risk Factors" in the most recent filing of UScellular's Form 10-K, as updated by any UScellular Form 10-Q filed subsequent to such Form 10-K.
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SOURCE Telephone and Data Systems, Inc. and United States Cellular Corporation
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