Array Digital Infrastructure And Telephone and Data Systems: Closure Of T-Mobile Deal Creates Opportunities With Bonds

2025-08-26 23:06:55 ET

The substantial dip in Array Digital Infrastructure's ( AD ) fixed-income securities following the sale of UScellular to T-Mobile ( TMUS ) is overdone and presents a new opportunity for holders of Telephone and Data Systems' ( TDS ) preferreds. The $4.4 billion deal will see TDS flush with cash due to its 81% stake in what was previously the fourth-largest full-service wireless carrier in the U.S. I currently still retain my large position in TDS's 6.00% Series VV cumulative preferreds ( TDS.PR.V ), but new opportunity and risk have materialized following the closure of the USM sale and the pending special dividend. UScellular, now renamed Array Digital Infrastructure, will focus on its tower business, remaining spectrum assets, and its non-controlling investment interests. AD owned 4,400 towers as of the end of its fiscal 2025 second quarter and is set to close the sale of some of its spectrum assets to Verizon ( VZ ) and AT&T ( T ) for an aggregate of $2.01 billion. I last covered both tickers in June....

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