Nextwave sells AWS spectrum for $150.1M, T-Mobile USA is the big buyer

Nextwave Wireless Inc. sold nearly two-thirds of its advanced wireless services spectrum for $150.1 million. The spectrum went to four different buyers.
The largest chunk landed in the hands of T-Mobile USA Inc. for roughly $98 million. The deal gives Nextwave a tidy profit of $47 million; the company acquired the spectrum it sold to T-Mobile USA for just over $51 million during the 2006 auction. Nextwave spent a total of about $115 million for 154 licenses during the auction.
T-Mobile USA, which spent $4.2 billion for spectrum during the AWS auction, is relying on that spectrum to launch 3G services. In its deal with Nextwave, T-Mobile USA picked up a 20 megahertz license covering Pittsburgh; a 20-megahertz license covering Sacramento, Calif.; a 10 megahertz license covering New Orleans; and a 10 megahertz license covering Little Rock, Ark.
Atlantic Wireless, L.P., ACS Wireless Inc., and MetroPCS AWS L.L.C. bought other licenses from Nextwave totaling $52.6 million.
“The sale of our AWS spectrum is just the first step in maximizing the value of our spectrum portfolio,” said Allen Salmasi, CEO and president of Nextwave. “We will continue to monetize our remaining spectrum assets in the U.S. and are working with Deutsche Bank and UBS Investment Bank to achieve our spectrum sale objectives.”
Nextwave said it plans to deposit $75 million of the proceeds into a restricted cash collateral account and the other half is to be used to redeem a portion of the notes. When the sale finalizes, Nextwave said it will still own significant spectrum positions parts of the Northeast, Florida and California.