Ericsson confirms senior secured customer financing to Leap
In connection with today's announcement concerning a restructuring by Leap Wireless International, Inc., Telefonaktiebolaget LM Ericsson confirms that is has provided senior secured customer financing to Leap which at June 30, 2002, amounted to gross exposure of SEK 1.1 bn (SEK 0.9 bn net of provisions).
In addition, Ericsson has provided un-drawn commitments to Leap which at the same date amounted to SEK 3.4 bn.
The Leap exposure represents approximately 4.2 % of Ericsson's total outstanding exposure. The un-drawn commitments to Leap account for approximately 13.6 % of all Ericsson un-drawn customer finance commitments as of June 30, 2002.
While Leap has stated its intention to continue its operations in an uninterrupted fashion, the outcome of the process publicly announced and communicated to Ericsson today is uncertain. Ericsson intends to continue its close cooperation with Leap while protecting its outstanding exposure.
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