T-Mobile to borrow up to $2B in bid

T-Mobile US Inc. is borrowing as much as $2 billion as the mobile carrier engages in an expensive battle to buy more spectrum assets, Bloomberg reports.

The company will issue the debt in three parts, maturing as late as 2031, according to a statement Monday. The proceeds will be used for general corporate purposes, which may include financing acquisitions of additional spectrum and refinancing debt.

Communications providers are amping up their bids in a 5G airwaves auction in the U.S., which may see T-Mobile’s peers such as Verizon Communications Inc. and AT&T Inc. tap the debt markets as well. The auction — which still has several more rounds of bidding ahead — has now surged past $80 billion, well above analysts’ estimates of $47 billion.

The frenzy underscores how crucial these midband frequencies are to companies trying to seize global leadership in emerging 5G technology.

T-Mobile shares gained 72% last year, compared with a loss of 4.3% for Verizon and a 26% skid for AT&T.