NextWave Wireless to Sell a Portion of Its AWS Spectrum for $150 Million
SAN DIEGO--(BUSINESS WIRE)--NextWave Wireless Inc. (NASDAQ: WAVE), a global provider of advanced mobile multimedia and wireless broadband technologies, announced that it has signed agreements with four parties to sell a portion of its AWS license portfolio, representing 63% of its total AWS MHz-pops, for a total of $150.1 million.
Subject to approval by the Federal Communications Commission, the agreements call for NextWave to sell 599 million MHz-pops of AWS spectrum at an average price of $0.25 per MHz-pop. The company's cost basis in the licenses being sold is $75.2 million or $0.126 cents per MHz-pop. Pursuant to the terms of NextWave's 7% Senior Secured Notes ("Notes"), $75 million of the proceeds from the sale will be deposited into a restricted cash collateral account and $75 million will be used to redeem a portion of the Notes. After the sale, the company will possess 348 million MHz-pops of AWS spectrum primarily in New England, Florida and California. NextWave acquired all of its AWS licenses for a total of $115.5 million, or $0.12 per MHz-pop, at an FCC auction held in 2006.
"The sale of our AWS spectrum is just the first step in maximizing the value of our spectrum portfolio," said Allen Salmasi, chief executive officer and president of NextWave Wireless. "We will continue to monetize our remaining spectrum assets in the U.S. and are working with Deutsche Bank and UBS Investment Bank to achieve our spectrum sale objectives."
NextWave's remaining U.S. spectrum assets include 2.8 billion MHz-pops of 2.3 GHz WCS spectrum, 972 million MHz-pops of 2.5 GHz BRS/EBS spectrum, and 348 million MHz pops of AWS spectrum. In addition the company has 5.9 billion MHz-pops of spectrum in Europe, Canada, and South America.
In April 2008, NextWave announced that it had retained Deutsche Bank and UBS Investment Bank to sell its U.S. spectrum assets. The company has also retained Canaccord Adams to sell its Canadian spectrum assets.
About NextWave Wireless
NextWave Wireless Inc. (Nasdaq: WAVE) supplies next-generation mobile multimedia and wireless broadband technologies to many of the world's leading mobile handset manufacturers, consumer electronics manufacturers and wireless service providers. From mobile television and mobile broadband systems to semiconductors and device-embedded mobile multimedia software that can be found in more than 250 million handsets around the globe, NextWave is evolving the way consumers experience mobile multimedia content. For more information visit NextWave at www.nextwave.com.
Subject to approval by the Federal Communications Commission, the agreements call for NextWave to sell 599 million MHz-pops of AWS spectrum at an average price of $0.25 per MHz-pop. The company's cost basis in the licenses being sold is $75.2 million or $0.126 cents per MHz-pop. Pursuant to the terms of NextWave's 7% Senior Secured Notes ("Notes"), $75 million of the proceeds from the sale will be deposited into a restricted cash collateral account and $75 million will be used to redeem a portion of the Notes. After the sale, the company will possess 348 million MHz-pops of AWS spectrum primarily in New England, Florida and California. NextWave acquired all of its AWS licenses for a total of $115.5 million, or $0.12 per MHz-pop, at an FCC auction held in 2006.
"The sale of our AWS spectrum is just the first step in maximizing the value of our spectrum portfolio," said Allen Salmasi, chief executive officer and president of NextWave Wireless. "We will continue to monetize our remaining spectrum assets in the U.S. and are working with Deutsche Bank and UBS Investment Bank to achieve our spectrum sale objectives."
NextWave's remaining U.S. spectrum assets include 2.8 billion MHz-pops of 2.3 GHz WCS spectrum, 972 million MHz-pops of 2.5 GHz BRS/EBS spectrum, and 348 million MHz pops of AWS spectrum. In addition the company has 5.9 billion MHz-pops of spectrum in Europe, Canada, and South America.
In April 2008, NextWave announced that it had retained Deutsche Bank and UBS Investment Bank to sell its U.S. spectrum assets. The company has also retained Canaccord Adams to sell its Canadian spectrum assets.
About NextWave Wireless
NextWave Wireless Inc. (Nasdaq: WAVE) supplies next-generation mobile multimedia and wireless broadband technologies to many of the world's leading mobile handset manufacturers, consumer electronics manufacturers and wireless service providers. From mobile television and mobile broadband systems to semiconductors and device-embedded mobile multimedia software that can be found in more than 250 million handsets around the globe, NextWave is evolving the way consumers experience mobile multimedia content. For more information visit NextWave at www.nextwave.com.
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