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Telephone & Data Systems (TDS) Prices Offering of 24M Depositary Shares Representing Interests in Series VV Preferred Stock

August 10, 2021 8:35 AM EDT

Telephone and Data Systems, Inc. (NYSE: "TDS") announced today that it priced an offering on August 9, 2021 of 24,000,000 depositary shares, each representing a 1/1,000th interest in its 6.000% Cumulative Redeemable Perpetual Preferred Stock, Series VV, $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 $600,000,000. TDS has granted the underwriters a 30-day option to purchase an additional 3,600,000 depositary shares in connection with the offering. The offering is expected to close on or about August 16, 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 "TDSPrV."

TDS intends to use the net proceeds from the offering for (i) the redemption of all $116.3 million in outstanding aggregate principal amount of our 6.625% Senior Notes due 2045, (ii) the redemption of some or all of $125.0 million of outstanding borrowings under our $400.0 million unsecured revolving credit agreement and (iii) 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.



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