This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Leap Announces Closing Of $1,425M Incremental Term Loan Facility And Redemption Of 7.75% Senior Secured Notes Due 2016





SAN DIEGO, April 15, 2013 /PRNewswire/ -- Leap Wireless International, Inc. (NASDAQ: LEAP) today announced the closing of the previously announced $1,425 million incremental term loan facility for its wholly owned subsidiary, Cricket Communications, Inc. ("Cricket").

(Logo: http://photos.prnewswire.com/prnh/20101220/MM20546LOGO-a)

The incremental term loan facility was fully drawn at closing and matures in March 2020.  Outstanding borrowings under the incremental term loan facility bear interest at the London Interbank Offered Rate ("LIBOR") plus 3.50% (subject to a LIBOR floor of 1.25%) or at the bank base rate plus 2.50% (subject to a base rate floor of 2.25%), as selected by Cricket.  Borrowings under the incremental term loan facility must be repaid in 26 quarterly installments of approximately $3.6 million each, commencing on September 30, 2013, followed by repayment of the balance at maturity.  The incremental term loan facility is guaranteed by Leap and certain existing and future subsidiaries of Leap, including all subsidiaries that guarantee Cricket's senior notes, and is secured by substantially all of the personal property of Leap, Cricket and the subsidiary guarantors.

In satisfaction of a condition to borrowing under the incremental term loan facility, Cricket issued a notice of redemption to redeem all of its 7.75% Senior Secured Notes due 2016 (the "Secured Notes") pursuant to their optional redemption provisions at a price of 103.875% of the principal amount of outstanding Secured Notes, plus accrued interest.  Cricket used approximately $1,185 million of the net proceeds from the incremental term loans to fund the redemption payment (including accrued interest) and to satisfy and discharge the indenture governing the Secured Notes. 

We intend to use the remaining net proceeds from the incremental term loans to purchase any and all of Leap's 4.50% Convertible Senior Notes due 2014 (the "Convertible Notes") that are validly tendered (and not validly withdrawn) in the tender offer announced on March 26, 2013, including payment of related premiums, accrued interest, fees and expenses.  In the event that the net proceeds from the incremental term loans exceed the amount required to purchase Convertible Notes in the tender offer and pay related fees and expenses, which could occur if the tender offer is not consummated for any reason or if the number of Convertible Notes validly tendered (and not validly withdrawn) in the tender offer is sufficiently less than 100% of the outstanding Convertible Notes, we intend to use that excess for general corporate purposes.

Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, UBS Securities, LLC and Citigroup Global Markets Inc. acted as the joint lead arrangers and joint book runners for the incremental term loan facility, and Bank of America, N.A. acted as syndication agent. Lazard Freres & Co. LLC acted as a financial advisor to Leap in connection with the incremental term loan facility.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs