| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers L > Headlines for Leap Wireless International Inc. > News item |
Cricket to pay $1.1 million of penalty interest on placement of notes
By Jennifer Chiou
New York, Feb. 29 - Cricket Communications, Inc. accrued additional interest expenses of about $1.1 million as of Dec. 31 on a private placement of unsecured senior notes due 2014, according to a 10-K filing with the Securities and Exchange Commission.
In June 2007, the company priced an additional $350 million of the notes to institutional buyers at 106. The notes were an add on to the company's 9 3/8% unsecured senior notes due 2014 and are treated as a single class with these notes.
Cricket noted that the $21 million premium that it received in connection with the issue has been recorded in long-term debt in the consolidated financial statements.
In connection with the sale of the additional notes, Cricket said that it entered into a registration rights agreement with the purchasers in which it agreed to file a registration statement with the SEC to permit the holders to exchange or resell the notes.
It was to have filed the registration statement within 150 days after the issue date, and because it did not do so, citing the restatement of its historical consolidated financial results during the fourth quarter of 2007, the company must pay the penalty interest.
The agreement also includes that additional interest will accrue on the principal amount of the notes at a rate of 0.50% per year during the 90-day period immediately following expiration of the deadline and will increase by 0.50% per year at the end of each subsequent 90-day period, but in no event will the penalty rate exceed 1.50% per year.
Cricket is the operating subsidiary of Leap Wireless International, Inc., a San Diego-based wireless communications provider.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.