Clearwire plans to shake the money tree, looking to raise $1.1B through sale of debt securities

Last month, we reported on the short-term liquidity problems on the horizon for WiMAX network operator Clearwire, and today, the company has announced measures aimed at rectifying its current situation. Clearwire plans to raise over $1.1 billion through the sale of debt securities in “private placement transactions.” As the press release reads:

Clearwire Communications is offering $175.0 million first-priority senior secured notes due 2015, $500.0 million of second-priority secured notes due 2017 and $500.0 million of exchangeable notes due 2040 and will grant the initial purchasers of the exchangeable notes an option to purchase up to an additional $100.0 million of exchangeable notes.

The securities will be offered to “qualified institutional buyers” only and note-holders will be paid-out in either cash or stock once the paper hits maturity. Recently, the “4G” network operator cut close to 15% of its workforce in order to conserve cash.

U.S. wireless provider Sprint — whose WiMAX enabled devices run on Clearwire’s airwaves — owns 54% of the network operator. Sprint declined to comment on the planned sales.

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