March 5 (Bloomberg) -- MetroPCS Communications Inc., the pay-as-you-go wireless carrier that agreed in October to merge with Deutsche Telekom AG’s T-Mobile USA business, is planning to sell benchmark debt in two parts.
The company may offer eight- and 10-year debt through its MetroPCS Wireless Inc. unit, according to a person familiar with the transaction. The bonds are being marketed this week.
A portion of the proceeds will be used to repay the company’s senior secured credit facility upon consummation of the T-Mobile transaction, the Richardson, Texas-based company said yesterday in a statement.
The bonds will redeemed if the merger doesn’t close by Jan. 17, said the person, who asked not to be identified because terms aren’t set. The securities will be redeemed at par through Sept. 30 and at 101 cents on the dollar afterwards.
Deutsche Bank AG, Credit Suisse Group AG, JPMorgan Chase & Co. and Morgan Stanley are managing the offering, the person said. Benchmark sales are typically at least $500 million.
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