LightSquared looks to increase DIP facility and extend maturity date

By Caroline Salls

Pittsburgh, April 8 - LightSquared Inc. is seeking approval of a seventh debtor-in-possession financing amendment, which provides an additional $10 million in financing, for a total of $77.63 million, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The amendment also extends the maturity date of the DIP facility to June 15.

The $77.63 million total includes the $10 million additional 2014 loan, a previous additional loan, an additional loan commitment fee, a roll-up loan, the initial loan, a build-out loan, an up-front fee, payment-in-kind interest and all amendment fees as of April 7.

The additional $10 million in financing can be used only for general corporate purposes. The company will pay a 2.5% fee for the additional loan.

The amendment order will be presented to the court for signature on April 14.

LightSquared is a Reston, Va.-based wholesale-only 4G-LTE network integrated with satellite coverage. The company filed for bankruptcy on May 14, 2012 under Chapter 11 case number 12-12080.

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