Leap announces change-of-control put option for 4.5% convertibles

By Angela McDaniels

Tacoma, Wash., March 13 - Leap Wireless International, Inc. provided notice of a make-whole fundamental change to holders of its 4.5% convertible senior notes due 2014, according to a company news release.

The make-whole fundamental change resulted from the acquisition of Leap by AT&T Inc.

The noteholders now have the right to require Leap to repurchase their notes on March 28 at par plus accrued interest up to but excluding the purchase date.

As an alternative, noteholders can convert their notes through the third scheduled trading day immediately preceding the maturity date. Notes surrendered for conversion will be converted into the right to receive the consideration that noteholders would have received under the merger had they already converted their notes.

In the merger, Leap shareholders received $15.00 and one contingent value right for each share of common stock.

Leap is a San Diego-based provider of digital wireless services.

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