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Telephone & Data Systems (TDS) Announces Pricing of an Offering of 16,000,000 Depositary Shares Representing an Interest in Series UU Preferred Stock

February 24, 2021 7:21 AM EST

Telephone and Data Systems, Inc. (NYSE: TDS) announced today that it priced an offering on February 23, 2021 of 16,000,000 depositary shares, each representing a 1/1,000th interest in its 6.625% Cumulative Redeemable Perpetual Preferred Stock, Series UU, $0.01 par value and $25,000 liquidation preference per share (equivalent to $25.00 per depositary share), for an aggregate public offering price of $400,000,000. TDS has granted the underwriters a 30-day option to purchase an additional 2,400,000 depositary shares in connection with the offering. The offering is expected to close on or about March 2, 2021, subject to satisfaction of customary closing conditions. TDS intends to list the depositary shares on the New York Stock Exchange ("NYSE") under the ticker symbol "TDSPrU."

TDS intends to use the net proceeds from the offering for general corporate purposes, which includes the funding of capital expenditures associated with the fiber-to-the-home program in new markets. BofA Securities, Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering.

The offering is being made under TDS' registration statement filed with the Securities and Exchange Commission (the "SEC") and only by means of the prospectus supplement and the accompanying prospectus.



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