Thursday, September 18, 2008
NextWave Wireless Gets $100M In Debt, Cuts Staff, Hires Banker
San Diego-based wireless broadband technology firm NextWave Wireless said today that it has scored a new, $100M debt financing for the firm's business, and made cuts in its staff, along with hiring an investment banker. The company said the restructuring included a reduction in workforce by over 20 percent. The company also said it is looking to divest it infrastructure business units in the new term, and hired an investment banker to manage the sale. Finally, the firm also said that it has appointed Michael Murphy of AlixPartners as its interim COO and interim Chief Administrative Officer as part of the funding. NextWave said that Murphy will be responsible for managing and implementing the company's cost reducation strategies. In a related move, the company said that it has engaged the services of Lazard to help the firm develop and implements its business divsestiture strategy. The debt comes from Avenue Capital Management II, L.P. and Sola, will be in the form of senior-subordinated secured second-lien notes. NextWave said that the debt will go towards funding its operations into 2010. NextWave was originally a buyer of government radio spectrum, but instead went on to develop semiconductors for the wireless market.