Leap Wireless can go ahead and pop the champagne, as it has just completed the spectrum transactions announced earlier this year that will hopefully lead to larger LTE growth. Leap's own Savary Island Wireless exchanged spectrum with T-Mobile USA and Cook Inlet/VS GSM VII PCS LLC (itself a T-Mo business), resulting in Cricket's parent company acquiring 10MHz of additional AWS spectrum in Phoenix, AZ and Houston, Galveston and Bryan-College Station, TX, among others. In return, T-Mobile received spectrum in various markets in Alabama, Illinois, Missouri, Minnesota and Wisconsin. There are also several intra-market exchanges in Philadelphia, Wilmington, Atlantic City, New Mexico, and Texas. In addition to the spectrum exchange, Leap also formally acquired the entirety of Savary Island Wireless for around $5.3 million (It previously only owned an 85 percent share) so the company has even more cause for celebration. Just don't overindulge on the Cristal, okay Leap?
Leap, Savary Island and T-Mobile USA Close Spectrum Exchanges
~ Leap Adds Spectrum in Phoenix and Houston
~~ Savary Island Wireless, LLC Becomes Wholly Owned Subsidiary of Cricket
SAN DIEGO, Oct. 1, 2012 /PRNewswire/ -- Leap Wireless International, Inc. (NASDAQ: LEAP), a leading provider of innovative and value-driven wireless communications services, announced today that it has completed the previously announced transactions to exchange spectrum in various markets with T-Mobile USA (T-Mobile), Cook Inlet/VS GSM VII PCS LLC, a joint venture between T-Mobile and Cook Inlet in which T-Mobile has a non-controlling majority interest (Cook Inlet), and Leap's non-controlled, majority-owned venture Savary Island Wireless, LLC (Savary Island).
Under the agreements, Leap acquired 10 MHz of additional AWS spectrum in Phoenix, AZ and Houston, Galveston and Bryan-College Station, TX to supplement the spectrum Leap currently operates in those markets, among others. Leap and Savary Island also assigned T-Mobile and Cook Inlet spectrum in various markets in Alabama, Illinois, Missouri, Minnesota and Wisconsin. The transactions also included intra-market exchanges between Leap and T-Mobile in Philadelphia, Wilmington, Atlantic City and various markets in New Mexico and Texas, and between Leap and Cook Inlet in certain markets in Texas.
"The closing of these agreements will allow us to enhance the delivery of our wireless services in key markets through the realignment of spectrum," said Doug Hutcheson, Leap's president and chief executive officer. "In addition, we now have added depth to our spectrum in select markets providing us with longer term flexibility to offer a larger LTE channel."
Financial details were not disclosed.
Leap also announced today that its wholly owned subsidiary, Cricket Communications, Inc. ("Cricket"), completed the acquisition of the remaining 15 percent controlling membership interest that it did not own in Savary Island for approximately $5.3 million in cash. As a result of the acquisition, Savary Island and its subsidiaries became wholly owned subsidiaries of Cricket.