April 30, 2024 09:21 GMT
T-Mobile US Fair Value
CREDIT SUPPLY
- Triple-tranche maiden EUR deal has IPT of MS+85-90 for the 5y, MS+115-120 for the 8y, and MS+135-140 for the 12y.
- We note that the T-Mobile USD curve trades ~5bps wide of the Verizon USD curve at most maturities including the 8y and 12y segment (albeit slightly wider at the short-end) while trading ~10bp wider than AT&T at the short-end but 10bp tighter than AT&T further out.
- We see FV around MS+60a, MS+85-90a, MS+105-110a though we attach a wider confidence interval here given the lack of a EUR curve. A T-Mobile EUR curve could possibly trade better relative to AT&T & Verizon with local recognition under the DT umbrella.
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