T-Mobile US Inc TMUS fell more than 3 percent in the after-hours session following the company’s proposal to raise equity capital by offering Mandatory Convertible Preferred Stock.
The company’s press released stated that “it is commencing a registered public offering of 17,391,305 shares of its Mandatory Convertible Preferred Stock, Series A, with a liquidation preference of $50 per share."
T-Mobile expected to use the net proceeds from the offering “for general corporate purposes, including capital investments and acquisition of additional spectrum unrelated to spectrum it may obtain in the Federal Communications Commission’s pending AWS-3 spectrum auction.”
The company expected to also grant the underwriters an “option to purchase up to an additional 2,608,695 shares of its Mandatory Convertible Preferred Stock.”
T-Mobile traded at $27.27, down 3.30 percent.
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