MetroPCS extends term B debt, permitted to sell $750 million of debt

By Sara Rosenberg

New York, July 22 - MetroPCS Communications Inc. completed the amendment of its credit facility, extending $1 billion of term loan B debt to Nov. 3, 2016 and permitting the sale of $750 million of additional debt securities as long as the accordion feature is reduced by the equivalent amount, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Initially, the company was only looking to extend $800 million of the term loan B.

Pricing on the extended term loan B is Libor plus 350 basis points and there is 101 call protection for one year. Pricing on the non-extended term loan B remains at Libor plus 225 bps.

The maturity on the extended term loan B will be shortened to May 1, 2014 if on that date the consolidated total leverage ratio is greater than 2.5 times and at least $500 million of senior notes remains outstanding.

Also, the amendment reduced the company's revolver to $67.5 million from $100 million, allows for the extension of the revolver at a later date and decreased the minimum consolidated fixed-charge coverage ratio to 1.10 times from 1.50 times.

In addition, the amendment provided for the replacement of Bear Stearns as the administrative agent with JPMorgan.

The amendment was completed on July 16.

MetroPCS is a Dallas-based wireless communications service provider.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.