Prepaid wireless MVNO Virgin Mobile USA posted results from its third quarter that included 46,000 net additions and a churn rate of 4.9 percent. The MVNO's net service revenue totaled $301.4 million during the quarter, up 25 percent from the same quarter last year. Adjusted EBITDA of $17 million was also up 4 percent over the year ago period.
In mid-October Virgin Mobile USA and its stock holdersÃƒâ€šÃ‚Â sold 27,500,000 shares
of Class A common stock at $15.00 per share. The IPO's net proceeds came to about $355.4 million following deductions for commissions and discounts of $23.7 million and expenses of $4.6 million. Virgin paid SprintÃƒâ€šÃ‚Â $136 million
from the proceeds for a portion of Sprint Nextel's limited liability company interests in Virgin Mobile USA. Following the IPO, the MVNO repaid $150 million of outstanding borrowings and $0.8 million of accrued interest. The company also repaid $45 million of debt and $0.6 million of interest to Sprint Nextel.
For more on Virgin Mobile USA:
- read this press release
Virgin Mobile USA's blemishes Article