LightSquared Announces Significant Financing

3 October 2010

LightSquared, the nation's first wholesale-only integrated wireless broadband and satellite network, has closed on $850 million of debt, which represents the initial round of a syndicated secured credit facility arranged and led by UBS AG.  The term of the credit facility will be four years, non-callable in the first year.  LightSquared will use the proceeds of the financing for general corporate purposes which include constructing its world-class, 4G-LTE-wholesale network.  With this additional $850 million, LightSquared has obtained an aggregate of more than $2 billion in equity and debt proceeds and in commitments.  

Sanjiv Ahuja, chairman and chief executive officer of LightSquared, stated: "We are extremely pleased that we have secured this significant amount of financing and believe it endorses our overall business model, while providing LightSquared with a solid step forward to execute our strategy and begin building out our 4G-LTE-wholesale network."

LightSquared also announced it has signed its first wholesale agreements and is in advanced negotiations with numerous potential customers.  Given this strong early indication of demand for capacity on its 4G-LTE-wholesale network, LightSquared further announced that it intends to accelerate the implementation of Phase 2 of the Inmarsat Cooperation Agreement to the fourth quarter of this year. By doing so, LightSquared will obtain increased access to spectrum controlled by Inmarsat.  

Upon providing notice to Inmarsat of its intent to accelerate implementation, LightSquared will owe Inmarsat annual spectrum lease payments. The first lease payment will be due upon delivery of notice by LightSquared to Inmarsat.    

Ahuja noted, "By accelerating Phase 2 of the Inmarsat Cooperation Agreement, we will be able to utilize and deploy additional spectrum earlier than anticipated, further enhancing the capacity of LightSquared's 4G-LTE-wholesale network."