LightSquared closes on $850 million of debt, to use money to build 4G networkBy AP
Monday, October 4, 2010
LightSquared closes on $850 million of debt
RESTON, Va. — Wireless broadband and satellite network LightSquared has closed on $850 million of debt, money it will use to build its 4G network.
With the money, the company now has more than $2 billion in equity and debt proceeds and in commitments.
The company is owned by private-equity firm Harbinger Capital Partners, which announced in July it would launch the wireless network, which should cover 92 percent of the population by 2015.
Consumers won’t buy service directly from LightSquared. Instead, LightSquared will sell access wholesale to other companies that can resell it to consumers.
The company plans to use the proceeds of the financing for general proposes and to build its network. The financing is the company’s initial round of its secured credit facility, which will last four years.
The company also said in a news release late Sunday that it has signed its first wholesale agreements and is in negotiations with other potential customers.
The company also plans to speed up its access to portions of Inmarsat’s satellites.
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