Leap Wireless International has entered into agreements to swap spectrum with Verizon Wireless under transactions that will provide Leap with additional spectrum in Chicago and net proceeds of roughly $100 million.
San Diego-based Leap has agreed to acquire 12 MHz of 700 MHz A block spectrum in Chicago from Verizon Wireless for $204 million and sell Verizon Wireless excess PCS and AWS spectrum in various U.S. markets for $188 million.
Also, Leap's non-controlled, majority-owned venture, Savary Island Wireless has entered into an agreement with Verizon Wireless to sell AWS spectrum in various markets for $172 million. Savary Island has agreed to use most of the proceeds to prepay debt to Cricket, Leap said.
The deals were announced a few days after Verizon Wireless revealed entering into a $3.6 billion agreement to purchase spectrum licenses from a joint venture among Comcast Corp., Time Warner Cable and Bright House Networks.
All the Leap-Verizon Wireless agreements are subject to regulatory approvals and other closing conditions.
