ORLANDO -- MetroPCS Communications Inc. (NYSE: PCS) will buy the remaining 15 percent it does not already own in Royal Street Communications Inc., after C9 Wireless Inc. exercised its put option under a 2004 agreement, according to an 8-K filing with the U.S. Securities and Exchange Commission.
The Richardson, Texas-based telecom company said it expects to buy out Dallas-based Royal Street, which is controlled by Southampton, N.Y.-based C9 Wireless, by Dec. 22.
Under the 2004 agreement, MetroPCS bought an 85 percent noncontrolling stake in Royal Street for an undisclosed sum and uses its mobile spectrum to provide communications services in some metropolitan areas in Florida including Orlando, and in Los Angeles. The agreement gave C9 a put option to sell the remaining 15 percent stake to MetroPCS in exchange for a fixed return on its investment in Royal Street.
MetroPCS also gave Royal Street a $1.6 billion line of credit under which outstanding borrowings were $1.1 billion as of Dec. 31.
Form 8-K filing: http://tinyurl.com/2ehjhde
Bio from MetroPCS' Web site:
Roger D. Linquist
Chairman, President & Chief Executive Officer
Roger D. Linquist co-founded MetroPCS Communications and has served as our Chief Executive Officer and Chairman of the Board of Directors of MetroPCS Communications since its inception and its President from inception through June 2007 and Secretary from inception through October 2004. In 1989, Mr. Linquist founded PageMart Wireless (now USA Mobility), a U.S. paging company. He served as PageMart's Chief Executive Officer from 1989 to 1993, and as Chairman from 1989 through March 1994, when he resigned to form the company. Mr. Linquist served as a director of PageMart Wireless from June 1989 to September 1997, and was a founding director of the Cellular Telecommunications and Internet Association.