US wireless operator MetroPCS is selling US$3.5bn of senior notes in a private offering. The proceeds will be used to pay off its senior secured credit facility and other fees provided the merger with T-Mobile USA closes successfully. MetroPCS is…
US wireless operator MetroPCS is selling US$3.5bn of senior notes in a private offering.
The proceeds will be used to pay off its senior secured credit facility and other fees provided the merger with T-Mobile USA closes successfully.
MetroPCS is issuing two tranches for US$1.75bn each. One matures in 2021 and pays interest at 6.25%, while the other is due 2023 and carries interest of 6.625%.
The telco agreed a reverse merger with Deutsche Telekom-owned T-Mobile in October last year. If the deal falls apart or does not close before January next year, MetroPCS will be obliged to repurchase the notes.
The notes offer is expected to close on 19 March 2013.
Meanwhile the company’s shareholders are set to vote on the reverse merger on 12 April. Last week the deal was cleared by the Department of Justice. The transaction still has to gain regulatory approval from FCC and the Committee on Foreign Investment, CFIUS.
Momentum has been building among MetroPCS’ activist investors to vote down the deal in recent weeks. They have complained that the way the deal is structured is unfair and that the amount of debt the newly merged operator will hold is too high.
Analysts have said recently that they expect T-Mobile to put forward improved terms.
