TDS announces redemption of 6.875% Senior Notes due 2059 and 7% Senior Notes due 2060

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Apr 12, 2021, 08:06 ET

CHICAGO, April 12, 2021 /PRNewswire/ -- Telephone and Data Systems, Inc. (NYSE: TDS) today announced that it will redeem all of its outstanding 6.875 percent Senior Notes due 2059 (NYSE: TDE) (the "TDE Notes") and its 7 percent Senior Notes due 2060 (NYSE: TDJ) (the "TDJ Notes"). The $225 million aggregate principal amount of outstanding TDE Notes and the $300 million aggregate principal amount of outstanding TDJ Notes will be redeemed May 12, 2021, at a redemption price of 100 percent of the principal amount ($25 face value per unit), together with accrued and unpaid interest to the redemption date. The paying agent is The Bank of New York Mellon Trust Company, N.A., c/o The Bank of New York Mellon, 111 Sanders Creek Parkway, East Syracuse, New York 13057, Attn: Bond Redemption Unit.

"Lowering the cost of our balance sheet is a top Treasury priority for TDS and UScellular this year, as we work to optimize our financial leverage to enable our businesses to continue investing in attractive opportunities such as 5G and fiber deployment," said Peter L. Sereda, TDS executive vice president and chief financial officer. "Redemption of these notes is a productive first step and we will evaluate other options to take advantage of the low interest rate environment."

UScellular (NYSE: USM), TDS' 82%-owned subsidiary, is also announcing a redemption of its 7.25 percent senior notes due 2063 (NYSE:UZB).

A notice of redemption with instructions is being distributed to registered holders of the notes. Beneficial holders with any questions about the redemption should contact their respective brokerage firm or financial institution that holds notes on their behalf.

About TDS
Telephone and Data Systems, Inc. (TDS), a Fortune 1000^® company, provides wireless; cable and wireline broadband, video and voice; and hosted and managed services to approximately 6 million connections nationwide through its businesses, UScellular, TDS Telecom, BendBroadband and OneNeck IT Solutions. Founded in 1969 and headquartered in Chicago, TDS employed 9,200 people as of December 31, 2020.

Visit investors.tdsinc.com for comprehensive financial information, including earnings releases, quarterly and annual filings, shareholder information and more.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: intense competition; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms; the ability to obtain access to adequate radio spectrum to meet current or anticipated future needs, including participation in FCC auctions; the ability to attract people of outstanding talent throughout all levels of the organization; TDS' smaller scale relative to larger competitors; changes in demand, consumer preferences and perceptions, price competition, or churn rates; advances in technology; impacts of costs, integration problems or other factors associated with acquisitions, divestitures or exchanges of properties or wireless spectrum licenses and/or expansion of TDS' businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties; uncertainties in TDS' future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and UScellular indebtedness or comply with the terms of debt covenants; conditions in the U.S. telecommunications industry; the value of assets and investments; the state and federal regulatory environment; pending and future litigation; cyber-attacks or other breaches of network or information technology security; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; the impact, duration and severity of public health emergencies, such as the COVID-19 pandemic. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under "Risk Factors" in the most recent filing of TDS' Form 10-K.

For more information about TDS and its subsidiaries, visit:
TDS: www.tdsinc.com
UScellular: www.uscellular.com
TDS Telecom: www.tdstelecom.com
OneNeck IT Solutions: www.oneneck.com

SOURCE Telephone and Data Systems