King & Spalding Advises Sprint Nextel In Purchase Of Virgin Mobile USA

Wednesday, September 9, 2009 - 01:00

King & Spalding recently announced that it advised Sprint Nextel Corporation in its definitive agreement to acquire Virgin Mobile USA for a total equity value of approximately $483 million, which includes the value of Sprint's current 13.1 percent fully diluted ownership interest in Virgin Mobile USA. In addition, at closing Sprint will retire all of Virgin Mobile USA's outstanding debt, which is $248 million net of cash and cash equivalents as of March 31, 2009, but is expected to be no more than $205 million net of cash and cash equivalents on September 30, 2009.

The King & Spalding team representing Sprint Nextel was led by New York-based corporate partners E. William Bates, II and Adam M. Freiman.

King & Spalding has also announced that it represented Millennium Energy Holdings, Inc., in the sale of the company's 50 percent participation in Carboeléctrica Sabinas, S. de R.L. de C.V., a Mexican coal supplier and owner of coal and associated gas reserves, to Minerales Monclova S.A. de C.V (Mimosa). The interest in Sabinas represented Millennium's largest unregulated energy investment. Sabinas intends to develop an 800-megawatt coal-fired generation plant in the state of Coahuila, United Mexican States. The sale price was not disclosed.

In addition to the sale of Millennium's interest in Sabinas, the parties and certain of their affiliates entered into an agreement in which they will share in certain proceeds derived from the marketing of certified emission reduction credits under the Kyoto Protocol.

The King & Spalding legal team representing Millennium in this transaction consisted of partner Kenneth S. Culotta, counsel John P. Crespo and associate Monica Hwang, in the firm's global transactions practice in Houston.