Writing CPUC, T-Mobile Cites COVID-19, Financing Worries for Completing Sprint Buy Now
T-Mobile told California regulators Tuesday night it's completing the multibillion-dollar takeover of Sprint before getting their approval because of concerns over COVID-19 and financing. Wednesday morning, it completed that deal.
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T-Mobile will honor its 50 voluntary commitments to the California Public Utilities Commission but not additional requirements in the CPUC’s proposed decision, the company wrote the regulator. T-Mobile then-president and now-CEO Michael Sievert asked the agency to revise its proposal and vote on it at commissioners' April 16 meeting. That's when the agency plans to vote on the deal, with CPUC conditions.
“The companies ... cannot take the risk of waiting any longer to consummate the merger,” Sievert wrote. “The COVID-19 crisis has created unprecedented uncertainty and risk in the financial markets, including the debt markets that are critical for us to secure the required financing for the merger and our 5G network build-out,” he said. “If we do not close the transaction on April 1, it is conceivable that we may never be able to do so.”
The CPUC didn't comment. Nor did T-Mobile.
Our earlier news bulletin about the completion of the deal is here. Our earlier article about the companies' plans is here. (Communications Daily is putting coronavirus-related news in front of its pay wall.)