#United States #Chicago #Dividend #UScellular #T-Mobile

UScellular Announces Special Dividend Expected Amid T-Mobile Sale

The United States Cellular Corporation (NYSE:USM) announced on July 24, 2025, that it anticipates its Board of Directors will approve a substantial special cash dividend post the expected sale of its wireless operations and certain spectrum assets to T-Mobile US, Inc. This divestment is projected to result in a dividend ranging from $22.50 to $23.75 per common share and Series A common share, which could aggregate between $1.950 billion and $2.075 billion.

President and CEO Laurent Therivel expressed optimism about the impending dividend, highlighting that it aligns with the company's efforts to provide additional clarity to its shareholders. The dividend is contingent upon the successful closing of the T-Mobile transaction and will need the Board's approval. Therivel mentioned, "We believe that the expected dividend payment will allow us to maintain ample liquidity and financial flexibility for future capital and operational needs."

Financial Breakdown of the Special Dividend

The anticipated cash distribution will follow a detailed reconciliation between the gross purchase price and net cash available for shareholder dividends. The gross purchase price from the transaction is approximately $4.4 billion, with adjustments made for various financial items. Here’s a brief look at the financial specifics:

• - Gross Purchase Price: $4,400 million
• - Contingent Adjustments: -$90 million
• - Senior Notes Assumed: -$1,665 million
• - Repayment of Term Loans: -$865 million
• - New Term Loan Proceeds: +$320 million
• - Tax Obligations: -$275 million
• - Employee Obligations: -$150 to -$200 million
• - Other Adjustments: -$25 to -$100 million
• - Cash Available: +$425 million
• - Net Cash for Distribution: $1,950 to $2,075 million

This financial strategy reflects UScellular's confidence in its operational transitions, especially as it prepares for a future that significantly alters its business model and cash flow needs.

Upcoming Changes Post-Sale

In conjunction with the expected special dividend, the company is preparing for a rebranding phase following the sale. Upon closure of the T-Mobile deal, UScellular intends to change its name to Array Digital Infrastructure, Inc. Additionally, Doug Chambers will take over as interim CEO of the restructured company. This name change represents a strategic shift focusing more on digital infrastructure as opposed to traditional wireless operations.

With approximately 4.4 million retail connections across 21 states as of this year, and a workforce of around 4,100 employees, UScellular is a substantial player in the telecommunications sector. The planned transformation aims to position the company favorably in a competitive market while significantly evolving its operational scope.

Investor Insights and Forward-Looking Statements

UScellular's announcement contains forward-looking statements regarding its dividend payouts and business outlook, centering on their successful transaction with T-Mobile. However, these prospects hinge on various external factors, including whether the sale will close and the Board's approval to declare the dividend. Investors are advised to consider the risks and uncertainties involved in these projections, reflecting on the fluid nature of the telecommunications landscape.

For further updates and detailed information, one can visit the official UScellular website at uscellular.com. This transformation signals a pivotal moment for both UScellular and its investors, potentially reshaping the company's future in the rapidly evolving telecommunications environment.