NextWave Wireless to Sell a Portion of Its AWS Spectrum for $150 Million
2008-07-24 13:16:01 -
www.nextwave.com - 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.
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. Investors should refer to NextWave's Quarterly Report on Form 10-Q for the fiscal quarter ended March 29, 2008 and other filings with the Securities and Exchange Commission for a description of risks relating to NextWave's business, including, but not limited to our limited relevant operating history, our need to secure significant additional capital in the future to implement our business plan and to continue to fund our research and development activities and our operating losses until we become cash flow positive and generate earnings, our ability to manage growth or integrate recent or future acquisitions, and the other risks describe under the heading "Risk Factors" in such filings. All such documents are available through the SEC's 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.
Ruder Finn
Kristie Heins Fox, 312-329-3985
heinsfoxk@ruderfinn.com
or
NextWave Wireless Investor Relations
Roseann Rustici, 203-742-2539
Vice President, Investor Relations
rrustici@nextwave.com
