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NextWave Wireless Obtains Additional FinancingSAN DIEGO --(Business Wire)-- NextWave Wireless Inc. (NASDAQ:WAVE (News - Alert)) today announced that its wholly owned subsidiary NextWave Wireless LLC has issued $15 million of additional Senior-Subordinated Secured Second Lien Notes due 2010 ("Second Lien Notes") to an affiliate of Avenue Capital Management II, L.P. After giving effect to original issue discount, NextWave received net proceeds of $14,250,000 to be used in connection with ordinary course business operations. The new Second Lien Notes have the same financial and other terms as the Second Lien Notes issued in October 2008, including interest at a rate of 14 percent per annum, which will accrue as payment-in-kind interest prior to the redemption of NextWave Wireless (News - Alert) LLC's 7% Senior Notes due 2010 (the "Senior Notes"). In addition, the Second Lien Notes are subject to mandatory redemption at a make-whole premium with the net proceeds of asset sales after the prior redemption of the Senior Notes. The Second Lien Notes will mature on December 31, 2010. As part of the financing, the Avenue Capital affiliate will also receive warrants to purchase 7.5 million shares of NextWave common stock at an exercise price of $.01 per share. Additional details regarding the financing can be found in NextWave's Form 8-K filed on today with the Securities and Exchange Commission. About NextWave Wireless NextWave Wireless Inc. is a wireless technology company that develops, produces and markets mobile multimedia and consumer electronic connectivity products including device-embedded software for mobile handsets, client-server media platforms, media sharing software for consumer electronics and pocket-sized mobile broadcast receivers. The company also manages and maintains worldwide wireless spectrum licenses. Note Regarding Forward-Looking Statements This press release contains "forward-looking statements" for purposes of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. There can be no assurances that forward-looking statements will be achieved, and actual events or results could differ materially from the events or results predicted by such statements. Important factors that could cause actual events or results to differ materially are discussed in greater detail in the filings of NextWave with the Securities and Exchange Commission. All such documents are available through the SEC's (News - Alert) website at www.sec.gov. NextWave makes no commitment to update any forward-looking statements in order to reflect subsequent changes in events or circumstances except as may be required pursuant to applicable law. |
