Remember that $125M spectrum voucher?
Title: Leap Obtains Financing to Support Additional Spectrum Purchases
Date: 1/23/01
SAN DIEGO, Jan. 23 /PRNewswire/ -- Leap Wireless International,
Inc. (Nasdaq: LWIN), an innovator of wireless communications
services, today announced that it had reached an agreement with
QUALCOMM Incorporated (Nasdaq: QCOM) under which QUALCOMM will
provide Leap up to approximately $125 million in financing to
support Leap's acquisition efforts in the Federal Communications
Commission's (FCC's) current auction of C- and F-Block spectrum
licenses. Under the terms of this Senior Secured Credit Facility,
QUALCOMM expects to transfer to Leap a $125 million auction
discount voucher previously issued by the FCC to QUALCOMM, but has
no role in its use in the auction. Leap expects to repay QUALCOMM
for the value of this voucher in the form of a loan payable by
Leap in a single payment of principal and accrued interest not
later than five years after the date of the initial draw. This
loan bears interest at a variable rate dependant on the collateral
provided by Leap. Leap expects this rate to be at the London
Inter-Bank Offer Rate (LIBOR) plus 7.5%.
"This agreement gives Leap financial resources on attractive terms
to support our spectrum acquisition activities in the FCC's
current auction of PCS spectrum," said Harvey P. White, Leap's
chairman and CEO. "We are pleased with the current state of the
auction and look forward to bringing Leap's innovative Cricket
service to a number of new markets."
About Leap
Leap, headquartered in San Diego, Calif., is a customer-focused
company providing innovative communications services for the mass
market. Leap pioneered the Cricket Comfortable Wireless service
that lets customers make all their local calls and receive calls
from anywhere for one low, flat rate. Leap currently has several
new services in development, including data services designed to
further transform wireless communications for consumers. For more
information, please visit www.leapwireless.com.
This news release contains "forward-looking statements" reflecting
management's current forecast of certain aspects of Leap's future.
Some forward-looking statements can be identified by forward-
looking words such as "believe," "may," "could," "will,"
"estimate," "continue," "anticipate," "intend," "seek," "plan,"
"expect," "should," "would" and similar expressions in this
release. The forward-looking statements are based on current
information, which Leap has assessed but which by its nature is
dynamic and subject to rapid and even abrupt changes. Leap's
actual results could differ materially from those stated or
implied by such forward looking statements due to risks and
uncertainties associated with Leap's business. Important factors
which may cause actual results to differ materially from the
forward-looking statements contained herein or in other public
statements by the Company are described in the section entitled
"Risk Factors" in the Company's Transition Report on Form 10-K for
the transition period from September 1, 1999 to December 31, 1999
and other documents filed with the Securities and Exchange
Commission. Factors that could cause actual results to differ
include but are not limited to: changes in the economic conditions
of the various markets the operating companies serve which could
adversely affect the market for wireless services; the ability of
Leap or its operating companies to access capital markets; Leap's
ability to rollout networks in accordance with its plans; failure
of the systems to perform according to expectations; the effect of
competition; the acceptance of the product offering by the
Company's target customers; its ability to retain customers; its
ability to maintain its cost, market penetration and pricing
structure in the face of competition; uncertainties relating to
negotiating and executing definitive agreements, including the
closing of pending transactions; technological challenges in
developing wireless data services and customer acceptance of such
services if developed; and rulings by courts or the FCC adversely
affecting its rights to own and/or operate certain wireless
licenses. We disclaim any obligation to update the forward-looking
statements contained herein to reflect future events or
developments. Cricket is a registered trademark and Comfortable
Wireless and the Around-Town Phone are service marks of Cricket
Communications, Inc. SOURCE Leap Wireless International, Inc.
CONTACT: Jessica Levy, Media Relations of Bock Communications,
Inc., 714-540-1030, jlevy@bockpr.com, for Leap Wireless
International, Inc.; or Sarah Thailing, Media Relations, 858-882-
6018, sthailing@leapwireless.com, or Jim Seines, Investor
Relations, 858-882-6084, jseines@leapwireless.com, both of Leap
Wireless International, Inc./
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