Thursday, October 9, 2008

NextWave Wireless Raises $100 Million in New Capital

NextWave Wireless raised $100 million in new financing through the issuance of senior-subordinated secured second-lien notes ("Notes") to Avenue Capital Management II, L.P. and SOLA.

"This financing will provide the runway we need to execute our strategic plan in an orderly and efficient manner. It will allow us to seek to maximize the value of our assets, including our spectrum, as we implement a global restructuring of our business," said Allen Salmasi, chief executive officer and president of NextWave Wireless.

Separately, NextWave Wireless received a Nasdaq Staff Deficiency Letter indicating that because the company's common stock has closed below the minimum $1.00 per share for the last 30 consecutive business days, the company fails to comply with the requirement for continued listing;

  • 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.

  • Also in April, NextWave Wireless announced its NW2000 Wave 2-ready family of second-generation mobile WiMAX chipsets designed for high-volume, small form-factor wireless broadband subscriber stations, including CPE modems, PC card modems, laptops, multimode/smartphone handsets and mobile multimedia terminals.

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