MetroPCS extends tender for 10¾% notes

New York, May 24 - MetroPCS, Inc. said it has extended its tender for its $150 million principal amount of 10¾% senior notes due 2011.

The offer will now end at 5 p.m. ET on May 26 instead of 5 p.m. ET on May 24.

At its last announcement on May 12, MetroPCS said it had received the necessary consents to amend the notes and set pricing.

By 5 p.m. ET on May 10, the company had received tenders and consents for all the outstanding notes.

MetroPCS said it has executed a supplemental indenture that will go into effect when it buys the notes.

Pricing was fixed at $1,192.72 per $1,000 principal amount, including a $30 per $1,000 consent payment.

MetroPCS announced the tender on April 26.

The Dallas wireless communications company said it was also soliciting consents to amend the note indenture to eliminate certain restrictive covenants and default provisions and to waive any defaults that may exist as of the date consents are accepted.

The consent solicitation ended at 5 p.m. ET on May 10. Holders who tender must deliver consents and vice versa.

The consent solicitation needs the approval of holders of a majority of the notes.

The tender is subject to conditions including MetroPCS obtaining a new $950 million senior secured credit facility to finance the tender. The bank financing will be carried out through its MetroPCS Wireless, Inc. subsidiary, with Bear, Stearns & Co. Inc. as lead arranger and bookrunner.

For each $1,000 principal amount of notes tendered by the consent date, MetroPCS is offering an amount assuming the notes are redeemed on their first call date of Oct. 1, 2007 at $1,053.75 per $1,000 principal amount, discounted using 50 basis points over the yield to maturity of the 2¾% U.S. Treasury note due Aug. 15, 2007. Pricing was set at 11 a.m. ET on May 10.

Holders will also receive accrued interest up to but excluding the date of payment.

The total includes a $30 per $1,000 principal amount consent payment. Holders who tender after the consent deadline will not receive this payment.

Bear, Stearns & Co. Inc. is dealer manager and solicitation agent (contact Global Liability Management Group at 877 696-BEAR (2327)). The information agent is Mellon Investor Services LLC (877 698-6870).

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