Events after the reporting period

For information on the business combination of T‑Mobile US with Sprint, consummated on April 1, 2020, please refer to the section “Group organization, strategy, and management” in the interim Group management report and the section “Changes in the composition of the Group.”

Refinancing measures at T‑Mobile US. In connection with the business combination with Sprint, on April 1, 2020, the “new” T‑Mobile US drew down on bridge loan facilities agreed with a total of 16 banks and with a total volume of USD 19 billion (EUR 17.3 billion). In connection with the financing provided with these bridge loan facilities, fees of USD 0.4 billion (EUR 0.3 billion) were paid to the banks. In addition, the “new” T‑Mobile US raised a new secured term loan facility of USD 4 billion (EUR 3.7 billion). The loan facilities were used, among other things, for the early repayment of intragroup loan liabilities of USD 8 billion (EUR 7.3 billion) to Deutsche Telekom AG and to refinance debt of the Sprint group. Senior secured notes, issued on April 9, 2020 for a total of USD 19 billion (EUR 17.3 billion), with terms of between 5 and 30 years and bearing interest of between 3.500 and 4.500 percent, were used to repay the bridge loan facility.

Termination of forward-payer swaps at T‑Mobile US. In connection with the issue of senior secured notes, T‑Mobile US terminated existing forward-payer swaps in early April 2020. Taking into account cash collateral totaling USD 1.2 billion (EUR 1.1 billion), T‑Mobile US made a total net payment of USD 1.1 billion (EUR 1.0 billion).

Downgrade of ratings for Deutsche Telekom AG and T‑Mobile US. As announced in 2018, rating agency Standard & Poor’s downgraded Deutsche Telekom AG’s rating from BBB+ to BBB with a stable outlook and T‑Mobile US’ rating from BB+ to BB also with a stable outlook on completion of the business combination with Sprint. Deutsche Telekom AG is therefore still a solid investment-grade company with access to the international capital markets.

Spectrum auction at T‑Mobile US. At the auction of mobile licenses that ended in March 2020, T‑Mobile US acquired licenses in the 37 GHz, 39 GHz, and 47 GHz bands for a total value of USD 873 million (EUR 797 million). This additional spectrum will be used to further improve the company’s 5G spectrum position. By March 31, 2020, advance payments of USD 175 million (EUR 160 million) had been made. The remaining amount was transferred on April 8, 2020, at which point the licenses were officially assigned and they have been available for commercial use since that date.

Early repayment of euro bonds. As part of the liabilities management in the Group, early repayments were made on three euro bonds of Deutsche Telekom International Finance B.V. which fall due in 2021. These repayments took the form of a partial buyback totaling EUR 0.8 billion.