By Paul A. Harris
St. Louis, June 1 - Cricket Communications, Inc., the operating subsidiary of Leap Wireless International, Inc., priced an upsized $350 million add-on to its 9 3/8% senior unsecured notes due Nov. 1, 2014 (Caa1/CCC) at 106 on Friday, according to an informed source.
The issue price came on top of the price talk, resulting in a 7.983% yield to worst.
The add-on was upsized from $285 million.
Citigroup ran the books for the quick-to-market add-on that was placed via Rule 144A with registration rights and Regulation S.
Proceeds will be used for general corporate purposes, including the build-out of new markets.
The original $750 million issue priced at par to yield 9 3/8% in October 2006, leaving the total issue size, following Friday's add-on, at $1.1 billion.
The issuer is a San Diego-based wireless communications provider.
| Issuer: | Cricket Communications, Inc.
|
| Amount: | $350 million (increased from $285 million)
|
| Maturity: | Nov. 1, 2014
|
| Security description: | Add-on to 9 3/8% senior unsecured notes
|
| Bookrunner: | Citigroup
|
| Coupon: | 9 3/8%
|
| Price: | 106
|
| Yield: | 7.983%
|
| Spread: | 304 bps
|
| Call features: | Callable on and after Nov. 1, 2010 at 104.688, 102.344, par on and after Nov. 1, 2012
|
| Equity clawback: | Until Nov. 1, 2009 for 35% at 109.375
|
| Trade date: | June 1
|
| Settlement date: | June 6, with accrued interest
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 106 area
|
| Total amount: | $1.1 billion, including $750 million priced in October 2006 at par
|
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