SAN DIEGO-Leap Wireless International Inc. closed on $1.1 billion in loans that the company said would help finance the operator’s bids in the upcoming Advanced Wireless Services spectrum auction scheduled for August.
Leap detailed its plans for the money in a filing with the Securities and Exchange Commission.
The proceeds from the loans “are expected to be used by (Leap subsidiary) Cricket (Communications Inc.) and its subsidiaries for the purchase and build-out of wireless licenses, including licenses that may be purchased from the Federal Communications Commission … in the `Advanced Wireless Service’ auction of wireless licenses,” Leap said in its filing. The company added that the money also could be used for ongoing working capital, acquisitions or acquisition-related build-outs, and investments.
The $1.1 billion consisted of a “seven-year $900 million term loan, which was fully drawn at closing, and an undrawn five-year $200 million revolving credit facility,” according to the filing.
