SAN DIEGO—Leap Wireless International Inc. filed for a proposed sale of 5.6 million shares of common stock, with the funds from the sale to be used for, among other things, acquiring and building out spectrum the carrier plans to bid on during the June auction of 1.7 and 2.1 GHz spectrum by the Federal Communications Commission.
Goldman, Sachs & Co. and Citigroup Corporate and Investment Banking will be the lead managers and joint bookrunners for the offering, which Leap also indicated could be used for general corporate purposes and working capital and in the spectrum after-market. Those two companies will be forward purchasers, which will enter into forward sale agreements with Leap, then borrow Leap common stock shares and sell them to the public in the underwritten offering.
Analysts noted last week that Leap was looking at raising round $250 million prior to the scheduled FCC auction.
