SAN DIEGO-Leap Wireless International Inc. announced a $250 million line of credit from Acqua Wellington North American Equities Fund Ltd., which the company said it will use to supplement funds for acquisitions, spectrum purchases and general corporate expenditures.
The money is in common stock equity financing, which Leap will have access to on an “as needed” basis. Over the next two-and-a-half years, Leap will be able to sell its stock to Acqua at a small discount to the market price, and the total amount of Acqua’s investment is dependent on Leap’s stock price.
“This line of credit provides us with the flexibility to raise additional equity on an `as needed’ basis over the coming months on favorable terms, thereby providing Leap access to capital to fund continued growth,” said Harvey P. White, Leap’s chairman and chief executive officer.
