By Paul A. Harris
St. Louis, May 31 - MetroPCS Communications, Inc. priced an upsized $400 million add-on to its 9¼% senior notes due Nov. 1, 2014 (Caa1/CCC) at 105.875 to yield 7.89% on Thursday, according to a market source.
The issue price came on the rich end of the 105.75 area price talk.
Bear Stearns & Co. ran the books for the Rule 144A and Regulation S add-on, which was upsized from $300 million.
Proceeds will be used for general corporate purposes, which could include financing the company's participation in and acquisition of additional spectrum in the upcoming Federal Communications Commission's 700 MHz auction.
The original $1 billion issue priced at par in November 2006.
The issuer is a wholly owned subsidiary of Dallas-based MetroPCS Wireless, Inc.
| Issuer: | MetroPCS Communications Inc.
|
| Amount: | $400 million (increased from $300 million)
|
| Maturity: | Nov. 1, 2014
|
| Security description: | Add-on to 9¼% senior notes
|
| Bookrunner: | Bear Stearns & Co.
|
| Coupon: | 9¼%
|
| Price: | 105.875
|
| Yield: | 7.89%
|
| Spread: | 303 bps
|
| Call features: | Callable Nov. 1, 2010 at 104.625, then at 102.313, declining to par on and after Nov. 1, 2012
|
| Equity clawback: | Until Nov. 1, 2009 for 35% at 109.25
|
| Trade date: | May 31
|
| Settlement date: | June 6, with accrued interest
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC
|
| Distribution: | Rule 144A/Regulation S
|
| Price talk: | 105.75 area
|
| Original issue: | $1.0 billion priced at par in November 2006
|
| Total issue size: | $1.4 billion
|
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