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MetroPCS Seeks $300M from Senior Notes

Wed, 01/14/2009 - 8:08am
Wireless Week Staff

MetroPCS intends to raise $300 million by selling senior notes at a 9.25% rate, the carrier said today. The private offering is for institutional investors and is due in 2014.

Funds would be used “for general corporate purposes, which could include working capital, capital expenditures, future liquidity needs, additional opportunistic spectrum acquisitions, corporate development opportunities and future technology initiatives,” the company stated.

MetroPCS did not announce any cost-cutting moves. Officials recently said the company has 5.4 million customers and that if the economy gets worse, then it may gain customers who choose to cancel landlines or existing post-paid contracts.

There is also speculation that MetroPCS will eventually merge with Leap Wireless despite an unsuccessful bid in 2007. That would help the similar companies save money and would create a more direct competitor to prepaid leader Tracfone, industry analysts have said.

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