The capital markets must be opening up. Leap Wireless announced it intends to offer and sell 6.1 million shares of its common stock in an underwritten public offering. The operator, which is actually benefiting from a contracting economy with its prepaid voice and data services, said it will use the net proceeds for general corporate purposes, which could include the expansion and improvement of its network footprint, acquisitions of additional spectrum or complementary businesses and, over the longer term, the deployment of next-generation network technology.
The company also announced its operating subsidiary, Cricket Communications, plans to commence an offering worth $1.1 billion in aggregate principal amount of senior secured notes. The net proceeds from the offering will be used to repay all amounts outstanding under Leap's senior secured credit agreement, and in connection with such repayment Leap intends to terminate the revolving credit facility. Leap intends to use any remaining net proceeds for expanding its footprint, acquisitions and next-generation technology.
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