Leap amends credit facility to allow more unsecured debt

New York, June 18 - Leap Wireless International, Inc. said that it and its Cricket Communications, Inc. subsidiary have amended its senior secured credit agreement to allow more unsecured debt, among other changes.

The San Diego-based wireless services company said the modifications are to reflect its growth and expansion.

Under the changes, Leap will able to incur $1.65 billion of unsecured debt, up from $1.2 billion, plus $1.00 per $1.00 raised from issuance of new equity up to $200 million.

The amount and duration of add backs for new market operating losses is increased in the calculation of consolidated EBITDA and the consolidated fixed charge coverage ratio.

Leap will be able to add back some capital expenditures relating to network expansion activities in calculating its consolidated fixed charge coverage ratio and other changes were made.

Interest rates step up by 50 basis points on both term loans and the revolver and there is now a 3% Libor floor.

The total of new incremental facilities is revised to $400 million and the permissible delta between existing and incremental loans is cut to zero form 50 bps.

Cricket is required to pay a prepayment penalty on the term loans in the first two years.

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