Leap Wireless International, a San Diego, Calif.-based wireless communication provider, has sold 5.6 million shares via a forward sale agreement with Goldman Sachs and Citigroup to fund its bid in a Federal Communications Commission airwaves auction. The firms also exercised an over-allotment option to purchase 840,000 shares, which were priced at USD42. In total the banks raised about USD268 million for the company.
The forward sale gives Leap committed capital for the auction without piling up cash on its balance sheet, said Dean Luvisa, v.p. of finance. "We're not sure how much funding we'll need, so we didn't want to overcapitalize." Luvisa said Leap decided the two banks were best positioned to lead after evaluating several other pitches, but he declined to discuss details of other offers.
