Leap Wireless has agreed to acquire 12 MHz of 700 MHz band spectrum in Chicago from Verizon Wireless for USD 204 million and to sell Verizon Wireless excess PCS and AWS spectrum in various markets across the US for USD 188 million. The additional spectrum in the Chicago area will supplement the 10 MHz of spectrum Leap currently operates in Chicago. The companies expect that both transactions will close simultaneously, subject to regulatory approvals and other customary closing conditions. Leap said the sale of spectrum will not impact its operations in existing markets. In addition, Leap's non-controlled, majority-owned venture, Savary Island Wireless agreed with Verizon Wireless to sell AWS spectrum in various markets for USD 172 million. Savary Island will use substantially all of the proceeds from the sale to prepay debt owed to Cricket. In connection with the closing, Cricket will repay the balance of a note which is secured by a portion of the Savary Island spectrum being sold to Verizon Wireless. Leap said the deal will give it net cash of over USD 100 million, which will support its LTE roll-out.
