MetroPCS lifts pricing on $1.5 billion term loan to Libor 375 bps

By Sara Rosenberg

New York, March 14 - MetroPCS Wireless Inc. increased pricing on its $1.5 billion term loan (Ba1/BB) to Libor plus 375 basis points from Libor plus 350 bps, and the debt is now being offered at an original issue discount of 99½ to 99¾ instead of at par, according to a market source.

As before, the loan has no Libor floor and 101 soft call protection for one year.

Recommitments are due at noon ET on Tuesday.

J.P. Morgan and Wells Fargo are the lead banks on the deal.

Proceeds will be used to repay a $500 million term loan maturing in 2013 priced at Libor plus 225 bps and for general corporate purposes, including opportunistic spectrum acquisitions.

The new deal is being done with an amendment and restatement of the company's existing senior secured credit facility, under which certain terms and conditions will be modified, subject to the approval from a majority of lenders.

Closing is expected to occur this month.

MetroPCS is a Dallas-based provider of unlimited wireless communications service for a flat rate with no annual contract.

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