Metro PCS 2007 Annual Report Download - page 120

MetroPCS Communications, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2007, 2006 and 2005
F-21
licenses in the FCC auction in May 1996. The repayment resulted in a loss on extinguishment of debt of
$1.0 million.
$150 Million 10¾% Senior Notes
On September 29, 2003, MetroPCS, Inc. completed the sale of $150.0 million of 10¾% Senior Notes due 2011
(the “10¾% Senior Notes”). On May 10, 2005, holders of all of the 10¾% Senior Notes tendered their 10¾% Senior
Notes in response to MetroPCS, Inc.’ s cash tender offer and consent solicitation. As a result, MetroPCS, Inc.
executed a supplemental indenture governing the 10¾% Senior Notes to eliminate substantially all of the restrictive
covenants and event of default provisions in the indenture, to amend other provisions of the indenture, and to waive
any and all defaults and events of default that may have existed under the indenture. On May 31, 2005, MetroPCS,
Inc. purchased all of its outstanding 10¾% Senior Notes in the tender offer. MetroPCS, Inc. paid the holders of the
10¾% Senior Notes $178.9 million plus accrued interest of $2.7 million in the tender offer, resulting in a loss on
extinguishment of debt of $34.0 million.
First and Second Lien Credit Agreements
On May 31, 2005, MetroPCS, Inc. and Wireless, both wholly-owned subsidiaries of MetroPCS, entered into the
first and second lien credit agreements, or credit agreements, which provided for total borrowings of up to
$900.0 million. On May 31, 2005, Wireless borrowed $500.0 million under the first lien credit agreement and
$250.0 million under the second lien credit agreement. On December 19, 2005, Wireless entered into amendments to
the credit agreements and borrowed an additional $50.0 million under the first lien credit agreement and an
additional $100.0 million under the second lien credit agreement.
On November 3, 2006, Wireless paid the lenders under the credit agreements $931.5 million, which included a
premium of approximately $31.5 million, plus accrued interest of $8.6 million to extinguish the aggregate
outstanding principal balance under the credit agreements. The repayment resulted in a loss on extinguishment of
debt in the amount of approximately $42.7 million.
$1.25 Billion Exchangeable Senior Secured Credit Agreement
In July 2006, MetroPCS II, Inc. (“MetroPCS II”), a wholly-owned subsidiary of MetroPCS, entered into a
secured bridge credit facility. The aggregate credit commitments available under the secured bridge credit facility
were $1.25 billion and were fully funded.
On November 3, 2006, MetroPCS II repaid the aggregate outstanding principal balance under the secured bridge
credit facility of $1.25 billion and accrued interest of $5.9 million. As a result, the Company recorded a loss on
extinguishment of debt of approximately $7.0 million.
$250 Million Exchangeable Senior Unsecured Credit Agreement
In October 2006, MetroPCS IV, Inc. (“MetroPCS IV”), a wholly-owned subsidiary of MetroPCS, entered into an
unsecured bridge credit facility. The aggregate credit commitments available under the unsecured bridge credit
facility totaled $250.0 million and were fully funded.
On November 3, 2006, MetroPCS IV repaid the aggregate outstanding principal balance under the unsecured
bridge credit facility of $250.0 million and accrued interest of $1.2 million. As a result, the Company recorded a loss
on extinguishment of debt of approximately $2.4 million.