LightSquared, a wholesale-only integrated wireless broadband and satellite network, 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 a 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.
LightSquared also announced it has signed its first wholesale agreements and is in advanced negotiations with numerous potential customers.
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.