Bear Stearns is leading a $950 million credit facility for MetroPCS Wireless. The loan consists of a seven-year, $700 million first-lien tranche and a seven-year, $250 million second-lien. Pricing is LIBOR plus 3 3/4% on the first-lien and LIBOR plus 5 3/4% on the second-lien. Both tranches have 102, 101 call protection.
The company is selling spectrum to Verizon Wireless for $230 million with combined proceeds of the sale and the new debt used to refinance $540 million of an existing bridge loan and tender for $150 million of 10 3/4% senior notes due 2011. It will also put an additional $425 million on the balance sheet. The deal has incurrence covenants and is being sold to loan and bond investors, who have already begun to commit.
The company is a subsidiary of MetroPCS Communications with 20 PCS licenses in the Miami/Ft. Lauderdale, Fla., areas, San Francisco, Atlanta and the Sacramento area. It offers flat-rate plans with unlimited local and domestic long distance minutes with no contractor. Braxton Carter, senior v.p. and cfo, referred calls to Bear Stearns.