SAN DIEGO, Aug. 28, 2012 /PRNewswire/ -- Leap Wireless International, Inc. (NASDAQ: LEAP), a leading provider of innovative and value-driven wireless communications services, today announced that it has completed the previously announced transactions to sell Verizon Wireless excess PCS and AWS spectrum in various markets across the U.S. and to acquire from Verizon Wireless 12 MHz of 700 MHz A block spectrum in Chicago. Upon the resolution of interference issues related to 700 MHz A block licenses, the additional spectrum Leap is acquiring will supplement the 10 MHz of spectrum Leap currently owns and operates in Chicago.
Leap's non-controlled, majority-owned venture, Savary Island Wireless, LLC (Savary Island), has also completed the sale of AWS spectrum in various markets to Verizon Wireless. In connection with this transaction, Leap also repaid the balance of a promissory note which was secured by a portion of the spectrum Savary Island sold to Verizon Wireless.
"These transactions generated net cash proceeds of more than $120 million that we plan to use to support our ongoing deployment of next-generation LTE network technology," said Doug Hutcheson, Leap's president and chief executive officer. "We expect to offer LTE services to at least two-thirds of our current network footprint over the next two to three years."
The sale of spectrum in these transactions will not impact Leap's operations in its existing operating markets.
Leap provides innovative, high-value wireless services to a young and ethnically diverse customer base. With the value of unlimited wireless services as the foundation of its business, Leap pioneered its Cricket service. Cricket products and services are available nationwide through company-owned stores, dealers, national retailers and at MyCricket.com. Through its affordable, flat-rate service plans, Cricket offers customers a choice of unlimited voice, text, data and mobile Web services. Headquartered in San Diego, Calif., Leap is traded on the NASDAQ Global Select Market under the ticker symbol "LEAP." For more information, please visit www.leapwireless.com.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect management's current expectations based on currently available operating, financial and competitive information, but are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those anticipated in or implied by the forward-looking statements. Our forward-looking statements, which include discussions regarding our future plans to offer LTE services, are generally identified with words such as "believe," "expect," "intend," "plan," "could," "may" and similar expressions. Risks, uncertainties and assumptions that could affect our forward-looking statements can be found in the section entitled "Risk Factors" included in our periodic reports filed with the SEC, including our Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 filed with the SEC on August 8, 2012.
All forward-looking statements included in this news release should be considered in the context of these risks. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Investors and prospective investors are cautioned not to place undue reliance on our forward-looking statements.
SOURCE Leap Wireless International, Inc.