UScellular Announces Expected Amount of Special Dividend

Core Viewpoint - United States Cellular Corporation (UScellular) plans to issue a special cash dividend of approximately $1.950 billion to $2.075 billion, contingent on the successful closing of its wireless operations sale to T-Mobile US, Inc. The expected dividend per share is between $22.50 and $23.75, pending board approval [1][2]. Financial Details - The gross purchase price for the sale is estimated at $4.4 billion, with adjustments leading to a net cash available for distribution of $1.950 billion to $2.075 billion after accounting for various financial obligations and adjustments [3]. - Specific deductions from the gross purchase price include a contingent purchase price adjustment of $90 million, repayment of term loans totaling $865 million, and a cash tax obligation of $275 million, among others [3]. Shareholder Impact - Telephone and Data Systems, Inc. (TDS), which will own approximately 81% of UScellular's equity post-transaction, will receive its proportional share of the special dividend [4]. Corporate Changes - Following the closing of the sale, UScellular intends to rebrand itself as Array Digital Infrastructure, Inc., with Doug Chambers appointed as interim CEO of the new entity [5]. Operational Context - UScellular currently serves 4.4 million retail connections across 21 states and had 4,100 employees as of March 31, 2025. The company is expected to have a significantly different operational profile after the sale of its wireless operations [6][7].