Leap's Cricket Communications to redeem $350 million 13% notes with loan borrowings

Pittsburgh, Nov. 9 - Leap Wireless International Inc.'s wholly owned subsidiary Cricket Communications Inc. will redeem its outstanding $350 million 13% senior secured notes with borrowings from $650 million in senior secured credit facilities, according to a company news release.

The loan will also be used to pay about $42 million of call premium and accrued interest on the notes, repay about $41 million in debt and accrued interest owed to the Federal Communications Commission and pay associated transaction fees and expenses.

The term loan component of the facility is expected to provide an additional $57 million in proceeds, which the company will use for general corporate purposes, including working capital and potential acquisitions, the release said.

Leap Wireless is a San Diego, Calif., mobile wireless services company.

© 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.