T-Mobile US executives reassured investors financial backing for a pending merger with Sprint remained high, as it responded to apparent concerns global banks facing pressure from the Covid-19 (coronavirus) outbreak might withdraw promised funding.
The operator issued a statement explaining contact with 16 banks which previously agreed to provide bridge loans for the US$26 billion deal yielded no indication any would back out of funding commitments.
CFO Braxton Carter added the “diversification of banks, and the spreading of the committed bridge financing creates a very high-quality bridge”.
The reassurance came as the operator neared completion of its long-awaited deal, with key opponents melting away and remaining regulatory approvals finally in sight.
Outgoing CEO John Legere argued the Covid-19 outbreak underscored the importance of the merger, noting “our nation is more dependent than ever on connectivity”. The transaction, which will give T-Mobile access to Sprint’s trove of 2.5GHz spectrum, will allow it to “deliver nationwide 5G service that is broader and more robust than anything else in America”, he added.
His comments came as operators across the US, including T-Mobile, scrambled to get their hands on additional spectrum to meet increased demand for mobile broadband capacity during the pandemic. –Mobile World Live