Just as its cash was dwindling, NextWave Wireless secured $100 million in debt financing from Avenue Capital Management and Sola. The company says the financing will fund it into 2010. NextWave also says it will conserve cash by divesting its infrastructure business units, reducing its workforce by more than 20 percent and scaling back on overhead costs.
As part of the financing terms, the company will appoint Michael Murphy, managing director of AlexPartners, as NextWave's interim COO and interim chief administrative officer. Murphy will work with the management team to implement the cost reduction strategies. NextWave also has hired Lazard to help it divest its infrastructure units.
In August, NextWave said that its cash was running out. At the end of second quarter, it said it had $71.1 million in cash, cash equivalents, marketable securities, and restricted cash. It also said that unless it raised money, it would run out of cash at the beginning of October.
- see this press release
NextWave's cash is running out
NextWave selling big swathes of spectrum