On January 5, 2026, T-Mobile USA, Inc. (?T-Mobile USA?), a Delaware corporation and wholly-owned subsidiary of T-Mobile US, Inc. (?Parent?), entered into a Second Amended and Restated Credit Agreement (the ?Credit Agreement?) by and among T-Mobile USA, as borrower, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders, swingline lenders and L/C issuers party thereto. The Credit Agreement amends and restates in its entirety the Amended and Restated Credit Agreement, dated as of October 17, 2022, by and among T-Mobile USA, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders, swingline lenders and L/C issuers party thereto. The amendment and restatement increases the commitments under the revolving credit facility from $7.5 billion to $10.0 billion and extends the maturity of the commitments to January 5, 2031, except as otherwise extended or replaced.
T-Mobile USA may repay amounts borrowed, reborrow and/or terminate the commitments under the Credit Agreement (in whole or part) at any time without premium or penalty. Borrowings under the Credit Agreement will bear interest based upon the applicable benchmark rate, depending on the type of loan and, in some cases, T-Mobile USA?s election, plus a margin. The benchmark rates consist of (i) the Base Rate, (ii) Term SOFR, (iii) the EURIBO Rate, (iv) Daily Simple SONIA, (v) Adjusted Term CORRA or (vi) Daily Simple SARON, each as described in the Credit Agreement.
Applicable margins are 0.00% in the case of Base Rate Loans (as defined in the Credit Agreement) and range from 0.600% to 1.000% in the case of Term Benchmark Loans and RFR Loans (each as defined in the Credit Agreement) depending on the credit rating of T-Mobile USA?s senior unsecured long-term debt (the ?Applicable Debt Rating?). T-Mobile USA will pay an unused commitment fee, calculated quarterly in arrears, at a rate per annum ranging from 0.040% to 0.080% depending on the Applicable Debt Rating. The $10.0 billion revolving credit facility includes a letter of credit sub-facility of up to $1.5 billion and a swingline loan sub-facility of up to $500 million.
T-Mobile USA?s obligations under the Credit Agreement are guaranteed by Parent and by all of T-Mobile USA?s wholly-owned domestic restricted subsidiaries (other than certain excluded subsidiaries, including certain designated special purpose finance vehicle entities, insurance subsidiaries and immaterial subsidiaries). The obligations under the Credit Agreement are not secured by any assets of T-Mobile USA, Parent or any of their subsidiaries. Subject to customary exceptions, the Credit Agreement contains certain limitations on the ability of T-Mobile USA and its restricted subsidiaries to engage in certain activities, including incurrence of liens and consolidations and mergers.
The Credit Agreement also contains a financial maintenance covenant, requiring T-Mobile USA to maintain a Leverage Ratio (as defined in the Credit Agreement) of 4.50 to 1.00 or less at each fiscal quarter end. The Credit Agreement contains customary events of default, including, without limitation, payment defaults, covenant defaults, breaches of certain representations and warranties, cross defaults to certain indebtedness, certain events of bankruptcy and insolvency, certain judgments, a change of control coupled with a ratings downgrade, certain ERISA events and the invalidity of the loan documents.
