RESTON, Va., Oct. 3 /PRNewswire/ --
- LightSquared Announces Closing of $850 million UBS AG Credit Facility
- LightSquared Intends to Accelerate the Implementation of the Cooperation Agreement with Inmarsat
- LightSquared Signs First Wholesale Agreements with Customers
LightSquared™, the nation's first wholesale-only integrated wireless broadband and satellite network, announced today it has closed on $850 million of debt, which represents the initial round of a syndicated secured credit facility arranged and led by UBS AG. The term of the credit facility will be four years, non-callable in the first year. LightSquared will use the proceeds of the financing for general corporate purposes which include constructing its world-class, 4G-LTE-wholesale network. With this additional $850 million, LightSquared has obtained an aggregate of more than $2 billion in equity and debt proceeds and in commitments.
Sanjiv Ahuja, chairman and chief executive officer of LightSquared, stated: "We are extremely pleased that we have secured this significant amount of financing and believe it endorses our overall business model, while providing LightSquared with a solid step forward to execute our strategy and begin building out our 4G-LTE-wholesale network."
LightSquared also announced it has signed its first wholesale agreements and is in advanced negotiations with numerous potential customers. Given this strong early indication of demand for capacity on its 4G-LTE-wholesale network, LightSquared further announced that it intends to accelerate the implementation of Phase 2 of the Inmarsat Cooperation Agreement to the fourth quarter of this year. By doing so, LightSquared will obtain increased access to spectrum controlled by Inmarsat.
Upon providing notice to Inmarsat of its intent to accelerate implementation, LightSquared will owe Inmarsat annual spectrum lease payments. The first lease payment will be due upon delivery of notice by LightSquared to Inmarsat.
Ahuja noted, "By accelerating Phase 2 of the Inmarsat Cooperation Agreement, we will be able to utilize and deploy additional spectrum earlier than anticipated, further enhancing the capacity of LightSquared's 4G-LTE-wholesale network."
LightSquared's mission is to revolutionize the U.S. wireless industry. Through the creation of the first-ever wholesale-only nationwide 4G-LTE network complemented by satellite coverage, LightSquared offers people the speed, value, and reliability of universal broadband connectivity, wherever they are in the United States. Through its wholesale-only business model, those without their own wireless network or who have limited geographic coverage or spectrum can develop and sell their own devices, applications, and services using LightSquared's open 4G network—at a competitive cost and without retail competition from LightSquared.
For further information about LightSquared, please go to www.LightSquared.com.
Forward Looking Statement:
This release contains forward-looking statements and information regarding LightSquared and its business. Such statements are based on the current expectations and certain assumptions of LightSquared's management and are, therefore, subject to certain risks and uncertainties. The forward-looking statements expressed herein relate only to information as of the date of this release. LightSquared has no obligation to update these forward-looking statements to reflect events or circumstances after the date of this release, nor is there any assurance that the plans or strategies discussed in this release will not change.