MetroPCS Communications Inc. bonds rose to the highest level since they were sold in 2010 after reports that Deutsche Telekom AG 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.