TDS Announces the Pricing of an Offering of 24,000,000 Depositary Shares Representing Interests in Series VV Preferred Stock

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Aug 10, 2021, 08:30 ET

CHICAGO, Aug. 10, 2021 /PRNewswire/ -- 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.

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. Before you invest, you should read the prospectus in that registration statement, the prospectus supplement related to the offering and other documents TDS has filed with the SEC for more complete information about TDS and the offering. Alternatively, you may request copies of these materials from BofA Securities, Inc. by telephone at 1-800-294-1322 or email at [email protected], Citigroup Global Markets Inc. by telephone at 1-800-831-9146 or email at [email protected], Morgan Stanley & Co. LLC by telephone at 1-866-584-6837, RBC Capital Markets, LLC by telephone at 1-866-375-6829 or email at [email protected], UBS Securities LLC by telephone at 1-888-827-7275 or Wells Fargo Securities, LLC by telephone at 1-800-645-3751 or email at [email protected].

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Telephone and Data Systems, Inc.
Telephone and Data Systems, Inc. (TDS), a Fortune 1000^® company, provides wireless; broadband, video and voice; and hosted and managed services to approximately 6 million connections nationwide through its businesses, UScellular, TDS Telecom, and OneNeck IT Solutions. Founded in 1969 and headquartered in Chicago, TDS employed approximately 8,900 associates as of June 30, 2021.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that could cause actual results, events and developments to differ materially from those set forth in, or implied by, such statements. These statements are based on the beliefs and assumptions of TDS management and the management of TDS subsidiaries. Generally, forward-looking statements include actions, events, results, strategies and expectations and are often identifiable by use of the words "believes," "expects," "intends," "anticipates," "plans," "seeks," "estimates," "projects," "may," "will," "could," "might," or "continues" or similar expressions. Factors that could cause actual results, events and developments to differ from those set forth in, or implied by, the statements set forth herein are discussed from time to time in TDS filings with the SEC, including TDS annual report on Form 10-K for the year ended December 31, 2020, as updated by any TDS Form 10-Q filed subsequent to such Form 10-K, which can be found on the SEC's website www.sec.gov.

All forward-looking statements described herein are qualified by these cautionary statements and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized. TDS does not undertake any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

SOURCE Telephone and Data Systems, Inc.