MetroPCS Bonds Climb to Record High on Deutsche Telekom Talks

MetroPCS Communications Inc. (PCS) bonds rose to the highest level since they were sold in 2010 after reports that Deutsche Telekom AG (DTE) is in talks to combine its T- Mobile USA unit with the U.S. wireless business.

The company’s $1 billion of 6.625 percent bonds due in November 2020 jumped 4.4 cents to 110 cents on the dollar at 1:49 p.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The yield fell to 5.1 percent from 5.8 percent. The Richardson, Texas-based company’s bonds gained the most in trading reported to Trace today, the data show.

Deutsche Telekom would hold the majority of shares of the combined company, the Bonn-based company confirmed in a statement today. Bloomberg News first reported discussions between the telecommunications providers earlier today.

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net.

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net.

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