Leap Wireless International Inc., the flat rate wireless carrier doing business as Cricket, said it closed on a $1.45 billion seven-year loan from a syndicate of financial entities led by Deutsche Bank Securities Inc., Merrill Lynch, UBS Securities, and Citigroup Global Markets Inc.
Leap said it intends to use the loan to redeem all of its senior secured notes due 2016 paying 7.75 percent, and all of Leap’s convertible senior notes due 2014 paying 4.5 percent.
For the seven-year loan, Leap said it’s paying LIBOR plus 3.5 percent, with a LIBOR floor of 1.25 percent. That means it’s getting the money for about 3.75 percent.
— SDBJ Staff Report