Cricket gets waiver of reporting deadlines, potential covenant violations

By Sara Rosenberg

New York, April 15 - Cricket Communications Inc. received a waiver from its bank lenders on Friday regarding financial filing delays as well as any potential default that may occur under financial covenants as a result of potential adjustments regarding lease accounting, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

More specifically, the company extended the deadline to May 16 to provide fiscal year Dec. 31, 2004 audited financial statements and extended the deadline to June 15 to provide fiscal quarter ended March 31 financial statements.

Furthermore, the company got a waiver of any default under the credit facility that may occur if it were to amend any prior period financial statements provided that EBITDA is at least $217 million for the four quarters ended Sept. 30, 2004 compared to the $219 million of EBITDA previously reported to the lenders, and debt and total liabilities, each as of Sept. 30, 2004, not be more than $10 million greater than that previously reported to the lenders.

Bank of America is the administrative agent on the deal.

Cricket Communications is the wholly owned operating subsidiary of Leap Wireless International Inc., a San Diego, Calif., mobile wireless services company.

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