LightSquared has closed on $850 million of credit arranged and led by UBS AG.  According to the announcement, the term of the credit facility will be four years, non-callable in the first year.  

LightSquared will use the proceeds of the financing for general corporate purposes which include constructing its 4G LTE wholesale network. With this additional $850 million, LightSquared has obtained an aggregate of more than $2 billion in equity and debt proceeds and in commitments.  

LightSquared has also signed its first wholesale agreements and is in advanced negotiations with numerous potential customers.  LightSquared further announced that it intends to accelerate the implementation of Phase 2 of the Inmarsat Cooperation Agreement to the fourth quarter of this year. By doing so, LightSquared will obtain increased access to spectrum controlled by Inmarsat.  

Upon providing notice to Inmarsat of its intent to accelerate implementation, LightSquared will owe Inmarsat annual spectrum lease payments. The first lease payment will be due upon delivery of notice by LightSquared to Inmarsat. 

"By accelerating Phase 2 of the Inmarsat Cooperation Agreement, we will be able to utilize and deploy additional spectrum earlier than anticipated, further enhancing the capacity of LightSquared's 4G-LTE-wholesale network," said Sanjiv Ahuja, chairman and chief executive officer of LightSquared.