Beleaguered LightSquared to receive up to $2.5B financing sponsored by Fortress
Virginia-based LightSquared Inc. may get more than $2 billion in financing sponsored by Fortress Investment Group LLC, sources told Bloomberg. The said funding would allow LightSquared owner Philip Falcone to avoid a sale to Charlie Ergen's Dish Network Corp.
According to the report, Falcone has been fighting to keep control of LightSquared's wireless spectrum assets. LightSquared has been facing dwindling cash in bankruptcy and a $2.2 billion takeover push by Dish Network.
Investment bank JPMorgan Chase & Co. is reportedly in talks with lenders to lead a $2 billion to $2.5 billion in financing sponsored by Fortress. Lenders would need to commit by January 8. A condition for closing the deal is a regulatory approval to use some of the company's wireless spectrum, Bloomberg said.
Wall Street Journal on Wednesday reported that private equity firm Centerbridge Partners LP has backed out of its deal to acquire LightSquared. Centerbridge had offered to pay about $3.3 billion for the wireless broadband network.