LightSquared Lands $586M from UBS, JP Morgan
LightSquared has closed $586 million in debt financing from UBS and JP Morgan, bringing its debt and equity financing over the past seven months to more than $2 billion.
The company will use the money to fund the construction of a hybrid satellite-terrestrial LTE network, which it will use to sell wholesale mobile broadband services in the United States and parts of Canada.
Sanjiv Ahuja, CEO of LightSquared, expressed confidence in the company's prospects in a statement.
"Our investors share our belief that now is the time for a wholesale model to succeed, as we will bring desperately-needed 4G capacity to businesses, consumers, government and public safety users through a wide variety of retail partners which will sell services based on our integrated terrestrial and satellite network," Ahuja said. "We are deploying the most advanced network while offering service at a lower price, because as a pure wholesaler, we will we will not have retail overhead."
LightSquared has reportedly landed five unnamed customers for its mobile broadband services and recently expedited a deal with Inmarsat to get more bandwidth for its LTE services.