Cricket Wireless 2012 Annual Report Download - page 140

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LEAP WIRELESS INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 15. Guarantor Financial Information
The $2,700 million of senior notes issued by Cricket (the “Issuing Subsidiary”) are comprised of $1,100
million of senior secured notes due 2016 and $1,600 million of unsecured senior notes due 2020. The notes are
jointly and severally guaranteed on a full and unconditional basis by Leap (the “Guarantor Parent Company”)
and Cricket License Company, LLC, a 100%-owned subsidiary of Cricket (the “Guarantor Subsidiary”).
The indentures governing these notes limit, among other things, the Guarantor Parent Company’s, Cricket’s
and the Guarantor Subsidiary’s ability to: incur additional debt; create liens or other encumbrances; place
limitations on distributions from restricted subsidiaries; pay dividends; make investments; prepay subordinated
indebtedness or make other restricted payments; issue or sell capital stock of restricted subsidiaries; issue
guarantees; sell assets; enter into transactions with affiliates; and make acquisitions or merge or consolidate with
another entity.
Condensed consolidating financial information of the Guarantor Parent Company, the Issuing Subsidiary,
the Guarantor Subsidiary, Non-Guarantor Subsidiaries (STX Wireless, Cricket Music and their respective
subsidiaries) and total consolidated Leap and subsidiaries as of December 31, 2012 and December 31, 2011 and
for the years ended December 31, 2012, 2011 and 2010 are presented below. The equity method of accounting is
used to account for ownership interests in subsidiaries, where applicable.
At December 31, 2011, Savary Island and its subsidiaries were reported as Non-Guarantor Subsidiaries in
the condensed consolidating financial statements. Savary Island and its subsidiaries became 100%-owned
subsidiaries of the Issuing Subsidiary on October 1, 2012 and were merged with and into the Issuing Subsidiary
on December 28, 2012. As a result of these transactions, the financial position, results of operations and cash
flows of these entities have been consolidated into the Issuing Subsidiary. All prior period consolidating financial
statements have been revised to reflect this reorganization.
126