MUMBAI (Thomson Financial) - Standard & Poor's Rating Services assigned its 'CCC' rating to San Diego-based Leap Wireless International Inc.'s proposed $200 million of convertible senior notes due 2014, with a '6' recovery rating, indicating negligible recovery expectation in the event of a payment default.
Leap will use the proceeds for working capital and other general corporate purposes, including the buildout of new markets, expansion of the company's footprint in its existing markets, and the development of its broadband initiative.
S&P said it has already taken the leverage degradation into account for the rating given its expectations that the company would need to raise more debt to fund new market buildouts.
At the same time, the ratings agency affirmed Leap's existing ratings, including its 'B-' corporate credit rating with a stable outlook.
S&P also assigned its 'B-' rating to funding Leap's unit Cricket Communications Inc.'s proposed $200 million of senior notes due 2015. TFN.newsdesk@thomson.com pvi/jro COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
Leap will use the proceeds for working capital and other general corporate purposes, including the buildout of new markets, expansion of the company's footprint in its existing markets, and the development of its broadband initiative.
S&P said it has already taken the leverage degradation into account for the rating given its expectations that the company would need to raise more debt to fund new market buildouts.
At the same time, the ratings agency affirmed Leap's existing ratings, including its 'B-' corporate credit rating with a stable outlook.
S&P also assigned its 'B-' rating to funding Leap's unit Cricket Communications Inc.'s proposed $200 million of senior notes due 2015. TFN.newsdesk@thomson.com pvi/jro COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.