Challenger operator UScellular issued $500 million-worth of 50-year corporate bonds, increasing its available funds in the run up to an auction of C-Band spectrum.

In a stock market announcement, the company said the proceeds would be used for “general corporate purposes”, but pointed to potential uses as spectrum purchases, debt repayment and funding of capex, including in connection with 5G projects.

Sale of the bonds is expected to close tomorrow (2 December).

The company’s fundraising comes ahead of an auction of a total of 280MHz of spectrum in the 3.7GHz to 4.2GHz range.

Bidding begins on 8 December, with the results expected in the new year.

Analysts predict operators and other companies could splash a combined $30 billion on licences, with UScellular tipped to be among the principal bidders.

GSMA Intelligence placed UScellular as the nation’s fourth-largest operator by connections in Q3, albeit well behind T-Mobile US, AT&T and Verizon.

As of 28 October, UScellular’s 5G network covered parts of Iowa, Maine, North Carolina, Oregon, Washington and Wisconsin.