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 (UNKNOWN:LEAP.DL) 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.