Rating: NR/BBB/BBB+ EUR Spreads Muted

• T-Mobile and KKR to form JV acquiring Metronet (the “fastest growing pure play fibre company in the US”), including its broadband infrastructure. Deal aims to close in 2025, pending regulatory approvals.
• T-Mobile to invest USD 4.9bn for a 50% equity stake, gaining 100% of Metronet's residential fiber operations, transitioning to T-Mobile for customer acquisition and support.
• Metronet will focus on wholesale network deployment, targeting 6.5mn homes passed by 2030; expected to be self-funding.
• TMUS had ND of USD 73.9bn at Q124 with Core EBITDA leverage ratio of 2.5x with this deal implying a ~0.2x increase in leverage. Target is mid-2x.
• https://investor.t-mobile.com/events-and-presentations/news/news-details/2024/T-Mobile-and-KKR-Announce-Joint-Venture-to-Acquire-Metronet-and-Offer-Leading-Fiber-Solution-to-More-U.S.-Consumers/default.aspx