Wireless communications service provider Leap Wireless International is securing funding on behalf of its Cricket Communications subsidiary.

The funding will help Leap expand into new markets. To enable expansion, Cricket will offer $200 million of unsecured senior notes at an undisclosed rate of interest and will be guaranteed by Leap.

"Opening new markets is the key to the company's new expansion plans," said Greg Lund, senior manager of corporate communications for Leap, San Diego. "We're in the process of doubling the size of the company between the start of this year and the end of 2010."

Senior notes, also known as senior debt, are usually bonds that take priority over other debt securities sold by the issuer. In the event the issuer goes bankrupt, senior debt must be repaid before other creditors receive any payment.

In addition to its Cricket and Jump Mobile services, Leap is developing a broadband service which is currently in the test-phase.

"We're rolling it out to new and existing markets," Mr. Lund said. "The company plans to continue to introduce new products and services."

Cricket has already launched in Oklahoma City, Las Vegas, southern Texas and St. Louis.

While Cricket originally was a spinoff of Qualcomm that served primarily smaller, rural markets, the company now operates in 23 states. The company owns spectrum licenses for 35 of the top 50 markets, such as Chicago, Milwaukee, Minneapolis, Philadelphia, Washington, Baltimore, New Orleans and Seattle.

Leap has used traditional media such as marketing platforms to raise its brand awareness.

"We're a heavy user of radio, as well as some TV when we launch in a new market," Mr. Lund said.

Mr. Lund said that ploy is based on Leap's targeted customer demographic: the mobile-dependent, urban youth market.

"By and large, most of our customers are young and very diverse, many young Hispanics and African Americans," Mr. Lund said. "We appeal to them because of the ease of use and our plans with unlimited minutes for voice, data, mobile Web and texts. Our customers text heavily.

"We serve an underserved market," he said. "Often it's customers who the larger companies don't want to mess with. The big guys are coming in with unlimited plans for $90 or $100, while ours is in the $35 to $45 range.

"They may not have credit cards, so we let people pay in cash and we don't require contracts, so our customers can pay by the week or by the month. You pay a flat rate, so your bill is predictable. There's a large market out there for people who want more flexibility and can't or don't want to lock themselves into a contract."