CHICAGO, April 12, 2021 /PRNewswire/ -- Telephone and Data
Systems, Inc. (NYSE: TDS) today announced that it will redeem all
of its outstanding 6.875 percent Senior Notes due 2059 (NYSE: TDE)
(the "TDE Notes") and its 7 percent Senior Notes due 2060 (NYSE:
TDJ) (the "TDJ Notes"). The $225
million aggregate principal amount of outstanding TDE Notes
and the $300 million aggregate
principal amount of outstanding TDJ Notes will be redeemed
May 12, 2021, at a redemption price
of 100 percent of the principal amount ($25 face value per unit), together with accrued
and unpaid interest to the redemption date. The paying agent is The
Bank of New York Mellon Trust Company, N.A., c/o The Bank of New
York Mellon, 111 Sanders Creek Parkway, East Syracuse, New York 13057, Attn: Bond
Redemption Unit.
"Lowering the cost of our balance sheet is a top Treasury
priority for TDS and UScellular this year, as we work to optimize
our financial leverage to enable our businesses to continue
investing in attractive opportunities such as 5G and fiber
deployment," said Peter L. Sereda,
TDS executive vice president and chief financial officer.
"Redemption of these notes is a productive first step and we will
evaluate other options to take advantage of the low interest rate
environment."
UScellular (NYSE: USM), TDS' 82%-owned subsidiary, is also
announcing a redemption of its 7.25 percent senior notes due 2063
(NYSE:UZB).
A notice of redemption with instructions is being distributed to
registered holders of the notes. Beneficial holders with any
questions about the redemption should contact their respective
brokerage firm or financial institution that holds notes on their
behalf.
About TDS
Telephone and Data Systems, Inc. (TDS), a
Fortune 1000® company, provides wireless; cable and
wireline broadband, video and voice; and hosted and managed
services to approximately 6 million connections nationwide through
its businesses, UScellular, TDS Telecom, BendBroadband and OneNeck
IT Solutions. Founded in 1969 and headquartered in Chicago, TDS employed 9,200 people as of
December 31, 2020.
Visit investors.tdsinc.com for comprehensive financial
information, including earnings releases, quarterly and annual
filings, shareholder information and more.
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 all statements
about the company's plans, beliefs, estimates, and expectations.
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: intense
competition; the ability to obtain or maintain roaming arrangements
with other carriers on acceptable terms; the ability to obtain
access to adequate radio spectrum to meet current or anticipated
future needs, including participation in FCC auctions; the ability
to attract people of outstanding talent throughout all levels of
the organization; TDS' smaller scale relative to larger
competitors; changes in demand, consumer preferences and
perceptions, price competition, or churn rates; advances in
technology; impacts of costs, integration problems or other factors
associated with acquisitions, divestitures or exchanges of
properties or wireless spectrum licenses and/or expansion of TDS'
businesses; the ability of the company to successfully construct
and manage its networks; difficulties involving third parties;
uncertainties in TDS' future cash flows and liquidity and access to
the capital markets; the ability to make payments on TDS and
UScellular indebtedness or comply with the terms of debt covenants;
conditions in the U.S. telecommunications industry; the value of
assets and investments; the state and federal regulatory
environment; pending and future litigation; cyber-attacks or other
breaches of network or information technology security; disruption
in credit or other financial markets; deterioration of U.S. or
global economic conditions; the impact, duration and severity of
public health emergencies, such as the COVID-19 pandemic. 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 TDS' Form 10-K.
For more information about TDS and its subsidiaries, visit:
TDS: www.tdsinc.com
UScellular: www.uscellular.com
TDS Telecom: www.tdstelecom.com
OneNeck IT Solutions: www.oneneck.com
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SOURCE Telephone and Data Systems