Standard & Poor's Ratings Services has updated its recovery analysis on Richardson, Texas-based wireless provider MetroPCS Communications Inc.'s (MetroPCS) to reflect the reduced size of the B-3 senior secured term loan that subsidiary MetroPCS Wireless recently completed. Our issue-level and recovery ratings remain unchanged. The company intends to use the proceeds from the new $500 million term loan for general corporate purposes, including opportunistic spectrum acquisitions. Our simulated default scenario contemplates intense price-based competition, primarily from larger national wireless carriers, resulting in elevated churn, margin compression, and ultimately a payment default. The loan agreement will allow the company to incur additional pari passu or junior secured debt loans subject to certain conditions up to an amount the greater of $500...
Companies mentioned in this report are: MetroPCS Communications Inc.,MetroPCS Wireless Inc.
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