US terrestrial/satellite venture LightSquared is reportedly close to securing a US$585m loan with UBS and JPMorgan & Case to help roll out its ground infrastructure.
The deal will increase LightSquared’s cash on hand to around US$1bn, reported Bloomberg,…
US terrestrial/satellite venture LightSquared is reportedly close to securing a US$585m loan with UBS and JPMorgan & Case to help roll out its ground infrastructure.
The deal will increase LightSquared’s cash on hand to around US$1bn, reported Bloomberg, which added that it currently holds about US$1.75bn in debt and equity.
A spokeswoman for the group insisted that, although it “talks to investors and potential investors all the time”, there is currently nothing to report on this front.
Speaking to TelecomFinance magazine on the sidelines of the Mobile World Congress in Barcelona on 16 February, CMO Frank Boulben said the venture plans to accelerate its terrestrial deployment by more than a year.
This could mean the group’s network, which is being built by European vendor NSN, will be able to cover 260 million people in the US by 2014.
Boulben also confirmed wholesale agreements with five customers: two carriers, a device manufacturer, a national retailer and a website.
The reported loan comes hot on the heels of a decision by hedge fund Harbinger Capital Partners, which owns LightSquared, to sell its remaining 14% stake in satellite operator Inmarsat for £421m.
Many industry spectators expect the proceeds of this stake sale to also be used to help fund LightSquared’s terrestrial infrastructure.
Meanwhile, US WiMAX wholesale rival Clearwire has revealed it is seeking additional funding for “significant” network expansion in the near time.
In a statement accompanying 4Q results on 17 February, the company stated: “Clearwire continues to seek additional funding to continue its network development by looking at a number of funding and other strategic alternatives, including potential strategic transactions, additional debt or equity financings and/or asset sales.”
Clearwire added that a process initiated in H2 2010 to seek bids for the potential sale of excess spectrum had received interest from multiple parties, “some of whom also expressed interest in exploring other strategic transactions with the company”.
The telco expects to officially announce the conclusion of these negotiations in the second quarter of this year.
Clearwire said that in its statement on Thursday that it is also seeking additional funding to continue its network developments. The options include potential strategic transactions, additional debt/equity financing or asset sales. This follows the private placement of US$1.1bn that the company completed in December 2010.
