TDS (NYSE: TDS) exits three credit agreements, takes $9M termination charge

Rhea-AI Filing Summary

Telephone and Data Systems, Inc. fully repaid all outstanding borrowings and other obligations under three major credit agreements and terminated those facilities on August 19, 2025. The terminated agreements included its amended and restated credit agreement with CoBank, ACB, a senior secured credit agreement with Wells Fargo National Association, and a credit agreement with Oaktree Fund Administration, LLC.

TDS incurred a $9 million termination penalty tied to ending the credit agreement with Oaktree Fund Administration, LLC. The actions reduce reliance on these specific lender arrangements and eliminate related indebtedness, while adding a one-time cash cost from the penalty.

Insights

Corporate credit and capital structure analyst

TDS exited three credit facilities, repaid all related debt, and absorbed a $9M penalty.

Telephone and Data Systems has eliminated indebtedness tied to three separate credit agreements by paying all outstanding obligations and terminating the facilities. The move simplifies its lender relationships with CoBank, Wells Fargo, and Oaktree and removes associated covenants and security packages referenced in those agreements.

The filing highlights a $9 million termination penalty from the Oaktree credit agreement, representing a one-time cash outflow. Without disclosed principal amounts, the net balance between reduced interest/covenant burden and lost committed liquidity cannot be gauged from this excerpt alone.

Subsequent periodic financial statements should show changes in total debt, interest expense, and available credit commitments as of August 19, 2025, helping investors understand how these terminations affect leverage and funding flexibility over time.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 19, 2025

TELEPHONE AND DATA SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

Delaware

001-14157

36-2669023

(State or other jurisdiction of incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

30 North LaSalle Street, Suite 4000, Chicago, Illinois 60602

(Address of principal executive offices and zip code)

Registrant's telephone number, including area code: (312) 630-1900

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Shares, $.01 par value

TDS

New York Stock Exchange

Depositary Shares each representing a 1/1000th interest in a share of 6.625% Series UU Cumulative Redeemable Perpetual Preferred Stock, $.01 par value

TDSPrU

New York Stock Exchange

Depositary Shares each representing a 1/1000th interest in a share of 6.000% Series VV Cumulative Redeemable Perpetual Preferred Stock, $.01 par value

TDSPrV

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐ Emerging growth company

☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 1.02.  Termination of a Material Definitive Agreement

On August 19, 2025, Telephone and Data Systems, Inc. (TDS) paid in full all indebtedness and other obligations outstanding under, and terminated: (a) the Amended and Restated Credit Agreement, dated as of July 30, 2021, among TDS, CoBank, ACB, as administrative agent, and the other lenders thereto (as amended from time to time); (b) the Senior Secured Credit Agreement, dated as of September 28, 2023, among TDS, Wells Fargo National Association, as administrative agent, and the other lenders thereto (as amended from time to time); and (c) the Credit Agreement, dated as of May 1, 2024, among TDS, Oaktree Fund Administration, LLC, as administrative agent, and the other lenders thereto.

TDS incurred a termination penalty of $9 million as a result of the termination of the Credit Agreement with Oaktree Fund Administration, LLC.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

						TELEPHONE AND DATA SYSTEMS, INC.
Date:			August 22, 2025			By:			/s/ Vicki L. Villacrez
									Vicki L. Villacrez
									Executive Vice President and Chief Financial Officer

FAQ

What did TDS (TDS) announce regarding its credit agreements on August 19, 2025?

Telephone and Data Systems fully repaid all indebtedness and other obligations under three major credit agreements and terminated those facilities on August 19, 2025. The affected agreements were with CoBank, Wells Fargo, and Oaktree Fund Administration, LLC, simplifying the company’s financing arrangements.

Which specific credit facilities did TDS (TDS) terminate in this 8-K?

TDS terminated three facilities: its Amended and Restated Credit Agreement with CoBank, ACB, a Senior Secured Credit Agreement with Wells Fargo National Association, and a Credit Agreement with Oaktree Fund Administration, LLC. All indebtedness and related obligations under these agreements were paid in full before termination.

Did TDS (TDS) incur any penalties from ending the Oaktree credit agreement?

Yes. TDS incurred a $9 million termination penalty in connection with ending its Credit Agreement with Oaktree Fund Administration, LLC. This charge is a one-time cash cost arising directly from the early termination of that specific lending arrangement.

How does the termination of these agreements affect TDS’s outstanding debt?

The company states it paid in full all indebtedness and other obligations under the three credit agreements before terminating them. This means the debt associated with these facilities is no longer outstanding, potentially lowering overall borrowings but also removing those specific credit lines.

Why is TDS’s termination of multiple credit agreements important for investors?

Ending three credit agreements after fully repaying all related obligations changes TDS’s capital structure and funding sources. It reduces reliance on those lenders and removes their covenants, while the $9 million penalty reflects a one-time cost that will affect near-term cash flows.

Who signed the TDS (TDS) 8-K related to the credit agreement terminations?

The report was signed on behalf of Telephone and Data Systems by Vicki L. Villacrez, the company’s Executive Vice President and Chief Financial Officer. Her signature confirms the disclosure about repayment and termination of the three credit facilities.