LightSquared Said to Seek Commitments on Bankruptcy Exit Loan
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Philip Falcone’s LightSquared Inc. is seeking commitments today on a $2 billion to $2.5 billion loan to support the wireless provider’s exit from bankruptcy, according to a person with knowledge of the transaction.
The 12 percent payment-in-kind debt is due in three years, with the ability for a one-year extension, said the person, who asked not to be identified without authorization to speak publicly. Investors will be offered the loan at 95 cents to 97 cents on the dollar, reducing proceeds for the borrower and increasing the yield for investors.