Wireless carrier MetroPCS Communications on Thursday announced plans to secure a $1.5 billion term loan in order to repay debt and potentially acquire spectrum that would help the company grow its customer base.
Dallas-based MetroPCS said the new funding reflects an amendment, restatement and expansion of its subsidiarys current $1.6 billion senior secured facility. The company expects to close the transaction this month.
MetroPCS plans to use part of the proceeds to pay off a $540 million loan that was scheduled to mature in 2013, according to Moodys Investors Service, the debt ratings agency.
New York-based Moodys projects that MetroPCS will spend roughly $1 billion over the next year to 18 months to acquire spectrum as the wireless provider expands its customer base of data customers.
“MetroPCS is a mini-juggernaut, growing at a pace higher than the industry average while transforming into a strong cash-generating business,” said Moody’s Senior Vice President Dennis Saputo.
MetroPCS, whose shares trade on the New York Stock Exchange under the ticker PCS, served approximately 8.1 million customers as of the end of 2010.