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Clearwire raises another $734 million in funding from Sprint and public offering

Updated Dec 19th, 2018 7:38PM EST
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Clearwire announced recently that it has garnered another $734 million in funding after closing its public offering of Class A common stock at $2.00 per share. The public offering earned Clearwire $384.1 million after commissions, and it pulled in an additional $331.4 million selling Class B shares to Sprint. “This equity raise is a critical step for Clearwire to achieve its long-term business plan of creating the first wide-channel TDD-LTE 4G network in the U.S.,” president and CEO of Clearwire Erik Prusch said. “The added resources will enable us to continue delivering 4G mobile broadband service to meet the rapidly growing demand in the industry. We remain ideally and uniquely positioned to serve both wholesale and retail customers well into the future.” Read on for more.

Clearwire said it plans to use the new capital for “general corporate and working capital purposes, including the deployment of mobile 4G LTE technology alongside the mobile 4G WiMAX technology currently on its network, and for the operation and maintenance of its networks, and to pay fees and expenses associated with this offering.”

Sprint and Clearwire entered into a 4G WiMAX and LTE agreement on December 1st in which Clearwire could earn as much as $1.6 billion over the next four years selling its services to Sprint.

CLEARWIRE ANNOUNCES CLOSING OF TRANSACTIONS TOTALING $734 MILLION IN GROSS PROCEEDS

  • Public Equity Offering Raises Gross Proceeds of $402.5 Million
  • Clearwire Receives Additional $331.4 Million in Net Proceeds from Sprint Exercise of Preemptive Right
  • New Capital Positions Company to Create Nation’s First Wide-Channel TDD-LTE 4G Network

BELLEVUE, Wash., Dec. 13, 2011 (GLOBE NEWSWIRE) —  Clearwire Corporation (Nasdaq:CLWR) (“Clearwire”) announced today that it has closed its public offering (the “offering”) of 201,250,000 shares of Class A common stock at $2.00 per share originally announced on December 5, 2011, comprised of 175,000,000 shares of Class A common stock initially offered and an additional 26,250,000 shares of Class A common stock sold pursuant to the underwriters’ exercise of their over-allotment option. The successful offering will provide Clearwire with net proceeds of $384.1 million, after underwriters’ discounts and commissions.

In addition, Sprint has exercised its preemptive rights to purchase 173,635,000 shares of Class B Common Stock and a corresponding number of Class B units in Clearwire Communications LLC, which will provide Clearwire with an additional $331.4 million in net proceeds. The total net new capital available to Clearwire following today’s closings is $715.5 million.

“This equity raise is a critical step for Clearwire to achieve its long-term business plan of creating the first wide-channel TDD-LTE 4G network in the U.S.,” said Erik Prusch, president and CEO of Clearwire. “The added resources will enable us to continue delivering 4G mobile broadband service to meet the rapidly growing demand in the industry. We remain ideally and uniquely positioned to serve both wholesale and retail customers well into the future.”

On December 1, 2011, Clearwire and Sprint announced agreements whereby, among other things, Sprint committed to provide additional equity funding to Clearwire in connection with a public offering meeting certain requirements. Today’s exercise of preemptive rights by Sprint satisfies its commitment.

Clearwire plans to use the net proceeds for general corporate and working capital purposes, including the deployment of mobile 4G LTE technology alongside the mobile 4G WiMAX technology currently on its network, and for the operation and maintenance of its networks, and to pay fees and expenses associated with this offering.

J.P. Morgan, BofA Merrill Lynch and Jefferies acted as joint book-running managers for this offering.