Thursday, February 17, 2011

Is Lightsquared taking over TerreStar or What?

oK so does this Mean that Lightsquared did bid on TerreStar ? I mean it was said that Harbinger Capital, Philip Falcone's Chosen bank for the Bidding was JP Morgan, and this is a JP Morgan Loan - So ???

"Falcone’s LightSquared Said to Be Near $585 Million Loan Accord"

Feb. 17 (Bloomberg) -- Philip Falcone’s LightSquared Inc. Venture is close to securing a $585 million loan to build its wireless network, as it negotiates a wholesale deal with a nationwide carrier, said two people familiar with the plans.

An official announcement of the loan could come as early as tomorrow, said the people, who wouldn’t be identified because the deal isn’t public.

The loan, from UBS AG and JPMorgan Chase & Co., will bring LightSquared’s cash on hand to about $1 billion, said one of the people.

The company has said it currently has roughly $1.75 billion in debt and equity.

LightSquared said this week it has agreements with five customers to provide wholesale fourth-generation service, including two carriers, a national retailer, a device manufacturer and a website.

LightSquared, based in Reston, Virginia, is seeking to compete with AT&T Inc., Verizon Wireless and Clearwire Corp. in selling 4G capacity.

Under a Federal Communications Commission order, the company has to build a network that covers up to 100 million Americans by the end of 2012 and 260 million by 2016.

Michiko Kurahashi, a UBS spokeswoman, and Jennifer Zuccarelli, a JPMorgan spokeswoman, didn’t immediately respond to calls after regular business hours.

Audrey Schaefer, a LightSquared spokeswoman, said the company is in discussions with investors all the time and there is nothing new to report.

The service provider, backed by Falcone’s Harbinger Capital Partners Hedge Fund, will begin network trials this year in Las Vegas, Baltimore, Denver and Phoenix after completing testing in a lab in the Dallas area. "

Source of Post
http://www.businessweek.com/news/2011-02-17/falcone-s-lightsquared-said-to-be-near-585-million-loan-accord.html

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