Leap Wireless Secures $1.4 Million Delayed-Draw Loan

Subject to its wholly owned subsidiary Cricket Communications redeeming all of its 7.75% senior secured notes due in 2016 and certain other conditions, Leap Wireless (NASDAQ: LEAP  ) entered into an amendment to its existing senior secured credit agreement on March 8 to provide for a new "delayed-draw incremental term loan facility" of up to $1.425 million.

Terms allow for borrowings -- in whole or in part -- in a single drawing by Cricket at any time on or prior to May 7 and will mature in March 2020 bearing interest rates at LIBOR plus 3.50% or at the bank base rate plus 2.50%, as selected by Cricket. The subsidiary also agreed to pay lenders a "ticking fee" equal to 0.50% per year on the undrawn amount of the loan facility per day beginning on March 15. 

The loan will be repaid in 26 quarterly installments equal to 0.25% times the initial principal amount borrowed, starting Sept. 30 until repayment of the balance at maturity.

Proceeds from the loan must be used to redeem, discharge, or purchase all of Leap's secured notes and up to $250 million of its 4.50% convertible senior notes due 2014. Any proceeds remaining may be used for general corporate purposes.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2305081, ~/Articles/ArticleHandler.aspx, 5/30/2015 10:54:30 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!