Leap Wireless' bank debt jumped a few hurdles last week and traded up to 78 from the 74 range in a series of trades totaling close to $100 million. Goldman Sachs reportedly traded a majority of the total. The telecommunications carrier is based in San Diego. Calls to spokeswoman Sarah Thailing were not returned by press time.
A dealer said the paper trading is the vendor financing provided to the company. The vendors that lend to Leap to buy equipment are selling off their risk to various banks, the dealer added. "There's three vendors and they're selling blocks of paper into dealers," he explained. "There's also improvement across the market," the dealer said of the rising levels. Another indicated that bid interest in the company's senior secured assets is driving the demand. Early last week, Leap Wireless announced it has upgraded its networks in higher density markets to increase voice capacity.