MetroPCS to launch $1.5 billion credit facility Wednesday

By Sara Rosenberg

New York, Oct. 5 - MetroPCS Communications Inc. is scheduled to hold a bank meeting on Wednesday morning to launch its proposed $1.5 billion credit facility, according to a market source.

Bear Stearns is lead arranger on the deal and joint bookrunner with Merrill Lynch and Bank of America.

The facility consists of a $100 million revolver and a $1.4 billion term loan B, with price talk expected to emerge at the launch, the source said.

Proceeds from the facility, along with a $1.1 billion senior notes offering, will be used to refinance $900 million of existing debt and fund the purchase of wireless spectrums won in Auction 66.

The company's existing credit facility includes, among other things, a first-lien loan that is callable at 102 and a second-lien loan that is non-callable until May. The company plans to tender for the second-lien loan to get this refinancing done.

Following this transaction, senior secured leverage will be 3.5 times against core EBITDA, total leverage will be 6.2 times against core EBITDA and net leverage will be 4.9 times against core EBITDA, the source added.

MetroPCS is a Dallas-based provider of wireless communications services.

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