Clearwire sells another $79.3 million in notes

Clearwire (NASDAQ:CLWR) said it sold another $79.3 million in exchangeable notes to investors who earlier had purchased $650 million in notes.

Clearwire will use the money, combined with the $675-million in secured debt raised last week, to fund its WiMAX buildouts. Earlier this month, Clearwire announced a debt offering of $1.33 billion. It needs to be aggressive to stay ahead of Verizon Wireless' (NYSE:VZ) LTE rollout schedule.

In addition, Clearwire's strategic investors, including majority owner Sprint Nextel (NYSE:S), can choose to purchase as much as $760 million in exchange notes to keep their shares of the company from becoming diluted. Sprint has until Jan. 2 to do so.

Sprint said it continues to discuss with Clearwire whether to provide further investment, but has said it currently has no plans to acquire Clearwire, a notion that had been talked about before Clearwire secured additional financing.

For more:
- see this Kansas City Business Journal article

Related articles:
Sprint: We have no plans to buy out Clearwire
Clearwire still pursuing spectrum sale, equity financing
Report: Sprint pushed for Clearwire-T-Mobile wholesale deal
Clearwire plans to raise $1.1B in debt offering
Sprint, Clearwire bicker over wholesale revenues from WiMAX smartphones
Clearwire open to funding from T-Mobile USA
Hesse attempts to dispel concerns over Clearwire's future

Suggested Articles

The U.S. Department of Justice is charging Huawei with racketeering and conspiracy to steal trade secrets.

This is the year that Verizon scales its 5G mmWave build big-time, with 60 cities planned by year-end and five times more small cells.

Whether you choose mmWave, low-band or mid-band spectrum for 5G, learn why automating network slice management is key to monetization and efficiency.