Virgin Mobile USA Completes Acquisition of Helio
August 22, 2008 8:28 PM | Virgin Mobile | Comments (0)
Virgin Mobile USA, Inc. has completed its acquisition of Helio, a joint venture between SK Telecom and EarthLink, Inc. that complements Virgin Mobile USA's postpaid products and services. The acquisition was completed based on the terms and conditions outlined in Virgin Mobile USA's June 27, 2008 press release. All necessary regulatory approvals have been obtained. |  |
- a set of unique and differentiated data applications;
- entry into the postpaid market, with a sophisticated billing and customer care platform;
- approximately 170,000 Helio customers;
- revised terms for the Sprint PCS Services Agreement [NYSE: S], expected to result in an 8% reduction in the Company's effective cost per minute in 2009;
- reduction in net debt of approximately $35 - $40 million, through the investments of $25 million each by SK Telecom and Virgin Group in the form of preferred mandatory convertible stock at the price of $8.50 per share;
- an increase to Virgin Mobile USA's total revolver from $75 million to $135 million, through additional commitments of $25 million by Virgin Group and $35 million by SK Telecom; and
- the addition of SK Telecom as a strategic shareholder with two seats on the Company's Board of Directors.
- A percentage of the equity issued and issuable in the transaction will be subject to escrow for one year to secure certain indemnification obligations.
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