By Paul A. Harris
St. Louis, June 19 - Cricket Communications, Inc., the operating subsidiary of Leap Wireless International, Inc., priced an upsized $300 million issue of seven-year senior notes (B3/B-) at par to yield 10% on Thursday, according to an informed source.
The issue was upsized from $200 million.
The yield came at the tight end of the 10% to 10¼% price talk.
The deal went well, according to the source, who added that the order book was well-oversubscribed.
Goldman Sachs & Co., Morgan Stanley, Citigroup and Deutsche Bank Securities were joint bookrunners for the quick-to-market Rule 144A with registration rights issue.
Proceeds will be used for working capital and other general corporate purposes, including the build-out of new markets, the expansion of Leap's footprint in its existing markets and the development of its broadband initiative.
The issuer is a San Diego-based wireless telecommunications company.
| Issuer: | Cricket Communications, Inc.
|
| Amount: | $300 million, upsized from $200 million
|
| Maturity: | July 15, 2015
|
| Security description: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co., Morgan Stanley, Citigroup, Deutsche Bank Securities
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Spread: | 615 bps
|
| Call protection: | Four years
|
| Change-of-control put: | 101
|
| Trade date: | June 19
|
| Settlement date: | June 25
|
| Ratings: | Moody's B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 10% to 10¼%
|
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