TELEPHONE & DATA SYSTEMS INC /DE/ 8-K

What Happened

• Telephone and Data Systems, Inc. (TDS) reported that Array (f/k/a United States Cellular Corporation), a TDS subsidiary, completed the previously announced sale of select spectrum assets to Verizon Communications Inc. The purchase price paid to Array at closing was $1.0 billion in cash. The License Purchase Agreement governing the sale was dated October 17, 2024; the closing was reported on June 1, 2026.
• On June 1, 2026, Array’s board also declared a special cash dividend of $11.00 per share for holders of Array’s Common Stock and Series A Common Stock. The record date is June 11, 2026 and the payment date is scheduled for June 25, 2026. As of June 1, 2026, TDS held 33,005,877 shares of Series A Common Stock and 37,782,826 shares of Common Stock.

Key Details

• Spectrum sale: $1.0 billion cash received by Array at closing (per License Purchase Agreement dated Oct. 17, 2024).
• Special dividend: $11.00 per share declared June 1, 2026; record date June 11, 2026; payment date June 25, 2026.
• TDS share holdings: 33,005,877 Series A shares + 37,782,826 Common shares = 70,788,703 total shares.
• Approximate cash to TDS from the dividend (based on reported holdings): 70,788,703 × $11 ≈ $778.7 million (before any taxes or adjustments).

Why It Matters

• The $1.0B cash sale provides Array (and indirectly TDS) with significant liquidity from monetizing spectrum assets, and the subsequent $11/share special dividend returns a large portion of that cash directly to Array shareholders.
• For TDS shareholders, the filing signals a substantial one-time cash distribution (roughly $778.7M based on disclosed holdings) that could materially affect TDS’s cash position and reported results for the period in which the dividend is paid. Investors should watch TDS’s subsequent filings (quarterly reports or press releases) for details on how proceeds and dividend flows are reflected in consolidated financials.