MetroPCS Communications Inc. (NYSE: PCS) plans to combine with the Deutsche Telekom (XETRA: DTE) unit T-Mobile USA.

The deal, structured as a recapitalization, will retain the T-Mobile name.

MetroPCS, which is based in Richardson, will declare a 1-for-2 reverse stock split, pay its shareholders around $1.5 billion (or about $4.09 per share prior to the stock split) and buy all of T-Mobile’s capital stock by issuing to Deutsche Telekom 74 percent of MetroPCS’ common stock on a pro forma basis.

Deutsche Telekom, in turn, will roll its existing intercompany debt into new $15 billion senior unsecured notes of the combined business. That will provide the newly combined business with a $500 million unsecured revolving credit facility.

The combined business this year will have around 42.5 million subscribers, $24.8 billion of revenue, $6.3 billion of adjusted earnings before interest, taxes, depreciation and amortization, $4.2 billion of capital expenditures, and $2.1 billion of free cash flow.

The companies are expecting to cut $6 billion to $7 billion in costs through the combination.