SAN DIEGO-Leap Wireless International Inc. reported that its Cricket Communications Inc. subsidiary amended its credit agreement to increase its senior secured credit facility by $100 million and has amended the terms of the facility to accommodate the planned expansion of the company’s business. Leap noted that the increase brings the total amount of borrowings to date to $600 million and bears interest at LIBOR plus 2.5 percent or bank rate plus 1.5 percent.
Leap added that the revisions also increase the amount it is permitted to invest in its spectrum auction-bidding partner Alaska Native Broadband 1 L.L.C. from $100 million to $325 million. ANB was the high bidder for nine licenses totaling more than $68 million during the recent Federal Communications Commission Auction 58.
Leap also reported that it has secured other amendments to its credit agreement, including the increase of its total leverage ratio and senior secured leverage ratio, and permitting the company to invest up to $60 million in new joint ventures.
