SAN DIEGO (AP) — Leap Wireless International said Thursday that its operating subsidiary, Cricket Communications, has priced its offering of $1.1 billion in senior notes.
Cricket is offering the 7.75 percent senior notes due 2016 to institutional buyers.
Leap expects proceeds from the offering to total roughly $1.042 billion after expenses, which will be used to repay its senior secured credit agreement and terminate a revolving credit facility. The remaining proceeds will be used for general corporate purposes, which could include expanding its network footprint and acquiring spectrum or businesses.
The notes sale is expected to close on June 5.
Leap shares slipped 8 cents to $37.71 in after-hours trading, after dropping $3.26, or 7.9 percent, to close the regular session at $37.79. The stock has traded between $14.18 and $60.22 during the past 52 weeks.