New Issue: Cricket Communications prices $1.1 billion 7¾% seven-year notes at 96.134 to yield 8½%

By Paul A. Harris

St. Louis, May 28 - Leap Wireless subsidiary Cricket Communications, Inc. priced a $1.1 billion issue of 7¾% seven-year senior secured notes (Ba2/B+/) at 96.134 to yield 8½% on Thursday, according to an informed source.

The yield was printed on top of price talk.

The deal went very well, the source said, adding that Leap is an issuer known well to high-yield investors.

Goldman Sachs & Co. was left lead bookrunner for the quick-to-market Rule 144A and Regulation S with registration rights issue. Deutsche Bank Securities Inc. was joint bookrunner.

The co-managers were Citigroup Global Markets Inc., UBS Investment Bank and Jefferies & Co.

The San Diego-based company will use the proceeds to refinance its senior secured term loan.

Issuer:	Cricket Communications, Inc.
Face amount:	$1.1 billion
Proceeds:	$1.057 billion (approximate)
Maturity:	May 15, 2016
Security description:	Senior secured notes
Left lead bookrunner:	Goldman Sachs & Co.
Joint bookrunner:	Deutsche Bank Securities Inc.
Co-managers:	Citigroup Global Markets Inc., UBS Investment Bank, Jefferies & Co.
Coupon:	7¾%
Price:	96.134%
Yield:	8½%
Spread:	526 bps
Call features:	Make-whole until May 15, 2012, then callable at 105.813, 103.875, 101.938, par on and after May 15, 2015
Equity clawback:	35% at 107.75% until May 15, 2012
Trade date:	May 28
Settlement date:	June 5
Ratings:	Moody's: Ba2
	Standard & Poor's: B+
Distribution:	Rule 144A/Regulation S with registration rights
Price talk:	8½% area

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