By Paul A. Harris
Portland, Ore., March 8 - MetroPCS Wireless, Inc. priced $3.5 billion of senior notes (B1/BB) in two equal-sized tranches on Friday, according to a buyside source.
The deal included $1.75 billion of eight-year notes which priced at par to yield 6¼%. The yield printed at the tight end of yield talk that was set in the 6 3/8% area.
MetroPCS also priced a $1.75 billion tranche of 10-year notes at par to yield 6 5/8%, at the tight end of yield talk set in the 6¾% area.
Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the bookrunners.
Proceeds will be used to repay bank debt related to the acquisition of the company by T-Mobile USA, and for general corporate purposes. Proceeds will be held in a restricted account pending the closing of the merger.
MetroPCS is a Dallas-based provider of wireless communications service.
| Issuer: | MetroPCS Wireless, Inc.
|
| Amount: | $3.5 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Trade date: | March 8
|
| Settlement date: | March 19
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Marketing: | Roadshow
|
|
|
| Eight-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | April 1, 2021
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| Spread: | 465 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until April 1, 2017, then callable at 103.125
|
| Price talk: | 6 3/8% area
|
|
|
| Ten-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | April 1, 2023
|
| Coupon: | 6 5/8%
|
| Price: | Par
|
| Yield: | 6 5/8%
|
| Spread: | 457 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until April 1, 2018, then callable at 103.313
|
| Price talk: | 6¾% area
|
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