Savary Island also entered into agreements to sell excess spectrum to Verizon
Wireless communications services provider Leap Wireless has entered into a definitive agreements to acquire 12 MHz of 700 MHz A block spectrum in Chicago from Verizon Wireless and to sell Verizon Wireless excess PCS and AWS spectrum in various markets across the US.
The additional spectrum in Chicago will supplement the 10 MHz of spectrum Leap currently operates in Chicago.
Both the transactions are expected to close simultaneously, subject to regulatory approvals and other customary closing conditions. The sale of spectrum in these transactions will not impact Leap’s operations in its existing operating markets.
In addition, Savary Island Wireless, Leap’s non-controlled, majority-owned venture, has also entered into a definitive agreement with Verizon Wireless to sell AWS spectrum in various markets for $172 million, subject to regulatory approvals and other customary closing conditions.
Leap president and chief executive officer Doug Hutcheson said together the transactions would allow Leap to strengthen its spectrum position in its Chicago market and receive net cash proceeds of more than $100 million, after repayment of indebtedness and estimated transaction fees.
"We plan to use the net cash proceeds to support our ongoing deployment of LTE network technology. As we have previously announced, we plan to cover approximately two-thirds of our current network footprint with LTE technology over the next two to three years," said Hutcheson.