MetroPCS $950 million credit facility to launch Tuesday

By Sara Rosenberg

New York, April 28 - MetroPCS Wireless Inc. is scheduled to hold a bank meeting on Tuesday morning to launch its proposed $950 million senior secured credit facility, according to a market source.

Bear Stearns is the sole lead arranger and bookrunner on the deal.

The facility consists of a $700 million seven-year first-lien term loan and a $250 million seven-year second-lien term loan, with price talk on both tranches still to be determined, the source said.

Proceeds will be used to fund a tender offer for MetroPCS Inc.'s $150 million 10¾% senior notes due 2011 and refinance $540 million of existing debt, with remaining proceeds going toward cash on the balance sheet for build-out and corporate uses.

Last-12-months pro forma first-lien leverage is 3.1x, secured debt to EBITDA through the second lien is 4.2x and EBITDA to cash interest expense is a little more than 3x.

"The whole deal here is one of enterprise value. [The company] has over $2 billion worth of spectrum value. [It has an] implied asset value of about $2.6 billion. So coverage there is pretty amazing. It's had a lot of interest [already] basically because of asset coverage," the source added.

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

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