MetroPCS receives consents to waiver on 10¾% notes

New York, Nov. 4 - MetroPCS Inc. said it received consents from the holders of a majority of its $150 million principal amount of 10¾% senior notes due 2011 to a limited waiver for up to 180 days of any default arising from the company's failure to file reports with the Securities and Exchange Commission.

The consent solicitation, begun on Oct. 21, expired at 5 p.m. ET on Nov. 3.

The company was offering to pay $2.50 per $1,000 principal amount for consents.

MetroPCS said it needed the limited waivers from noteholders because it has not filed its financial reports with the SEC and provided them to the holders.

In addition to the initial fee, if MetroPCS does not file the reports within 120 days it may pay a further fee of $2.50 per $1,000 principal amount to extend the waiver and again after 150 days.

Dallas-based MetroPCS, which provides wireless communications, has $150 million of the notes outstanding. It is a subsidiary of MetroPCS Communications Inc.

Bear Stearns & Co. Inc. is the solicitation agent (877 696-BEAR), and Mellon Investor Services LLC (Banks and brokers call 201 329-8794, other call 877 698-6870) is the information and tabulation agent.

Earlier this month, the company's audit committee determined that the company's financial statements for the years ended Dec. 31, 2002 and 2003 and all earnings releases for the period were unreliable, according to an Oct. 6 news release filed with the SEC.

As a result of the problems, MetroPCS is delaying the release of its financials for the quarters ending June 30 and Sept. 30 until an investigation is completed.

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