Leap Wireless (LEAP) Enters Spectrum Swaps with Verizon (VZ) iin Chicago, Elsewhere
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Leap Wireless International, Inc. (Nadaq: LEAP), has entered into definitive agreements to acquire 12 MHz of 700 MHz A block spectrum in Chicago from Verizon Wireless for $204 million and to sell Verizon Wireless (NYSE: VZ) excess PCS and AWS spectrum in various markets across the U.S for $188 million. This additional spectrum in the Chicago area will supplement the 10 MHz of spectrum Leap currently operates in Chicago. The companies anticipate that both transactions will close simultaneously, subject to regulatory approvals and other customary closing conditions. The sale of spectrum in these transactions will not impact Leap's operations in its existing operating markets.
In addition, Leap's non-controlled, majority-owned venture, Savary Island Wireless, LLC (Savary Island), has also entered into a definitive agreement with Verizon Wireless to sell AWS spectrum in various markets for $172 million, subject to regulatory approvals and other customary closing conditions. Savary Island has agreed to use substantially all of the proceeds from this sale to prepay its indebtedness to Cricket at the closing of the transaction. In connection with such closing, Cricket will repay the balance of a note which is secured by a portion of the Savary Island spectrum being sold to Verizon Wireless.
Falkenberg Capital Corporation of Denver, Colo., represented Leap in this transaction.
In addition, Leap's non-controlled, majority-owned venture, Savary Island Wireless, LLC (Savary Island), has also entered into a definitive agreement with Verizon Wireless to sell AWS spectrum in various markets for $172 million, subject to regulatory approvals and other customary closing conditions. Savary Island has agreed to use substantially all of the proceeds from this sale to prepay its indebtedness to Cricket at the closing of the transaction. In connection with such closing, Cricket will repay the balance of a note which is secured by a portion of the Savary Island spectrum being sold to Verizon Wireless.
Falkenberg Capital Corporation of Denver, Colo., represented Leap in this transaction.
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