Nextwave Wireless (fka WAVE)

[revlis]

NextWave fails to pay maturing first-lien notes

NextWave Wireless Inc., a holding company for wireless spectrum licenses, was unable to pay off $129 million in senior secured first-lien notes when they matured on July 17.

The company said it negotiated a “limited waiver” postponing the payment obligation until Aug. 1. San Diego-based NextWave (Nasdaq: WAVE) said it is in discussion with all its secured lenders on a longer-term forbearance. So far, the company said it hasn’t been able to negotiate maturity extensions.

NextWave has $179 million in senior-subordinated second- lien notes that mature in November. In addition, there are $640 million in senior-subordinated third-lien notes that mature in December.

The company said in regulatory filings that it has been delayed in selling wireless-spectrum licenses.

For the first quarter, there was no income, leading to a $5.1 million loss from operations and a $61 million net loss, taking into consideration $58.5 million of interest expense.

As of April 2, there was $31.5 million in cash among assets on the books for $484.5 million. The balance sheet was upside down with current liabilities of $834.6 million.

Then called NextWave Telecom Inc., the company confirmed a Chapter 11 plan in early 2005 which gave shareholders $6.79 a share in cash plus notes and stock, with the option to receive more stock in lieu of cash. After reorganization, NextWave intended to focus on providing 4G wireless broadband in New York and Las Vegas as opposed to being a wireless phone provider.

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