Key Developments For Clearwire Corporation
Clearwire Corporation (CLWR.O) (Nasdaq)
Clearwire Corporation Announces Pricing Of Additional $920 Million Of 12% Senior Secured Notes Due 2015, Expanding Note Facility To $2.78 Billion
Clearwire Corporation announced that Clearwire Escrow Corporation, an unrestricted subsidiary of Clearwire Communications LLC, has priced a supplemental offering of an additional $920,000,000 aggregate principal amount of 12% senior secured notes due 2015 at an issue price of 97.9% (Notes). This offering is in addition to the completion of today`s offering of $1,852,494,000 aggregate principal amount of 12% senior secured notes due 2015. The gross proceeds of this new debt offering will be placed in an escrow account until the consummation of the closing of the second phase of the $1.564 billion in new investment capital from Sprint Nextel Corporation, Comcast Corporation, Time Warner Cable Inc., Intel Corporation, Eagle River Holdings, LLC and Bright House Networks, LLC. As previously announced, Clearwire received approximately $1.057 billion in cash from the equity financing on November 13, 2009 and expects to receive an additional $440 million in cash at a second closing, which is targeted to be completed by year end 2009, and the remaining $66 million will be funded at a closing, which is targeted to be completed during first quarter 2010. The sale of the new notes is expected to be consummated on or about December 9, 2009.
Clearwire Corporation To Launch Rights Offering To Existing Stockholders
Clearwire Corporation announced that it intends to launch a common stock rights offering, pursuant to which rights to purchase shares of its Class A common stock will be offered pro rata to holders of its Class A common stock as of a record date to be determined. Each right will be exercisable for approximately 0.4336 shares of Class A common stock at a per share price of $7.33. The Company plans to file a registration statement with the Securities and Exchange Commission to register the rights and the underlying Class A common stock within the next 30 days, and to issue the rights once this registration statement is effective. The rights offering will be open for a period of six months following the effective date of the registration statement. The parties to the Company's Equityholders` Agreement, dated November 28, 2008, have agreed not to exercise any rights received by them in the rights offering.
Clearwire Corporation To Raise Over $1.5 Billion To Continue National Expansion Of 4G Mobile Internet Services
Clearwire Corporation announced that it has executed a definitive agreement to raise $1.564 billion in new investment capital from Sprint Nextel Corporation, Comcast Corporation, Time Warner Cable Inc., Intel Corporation, Eagle River Holdings, LLC and Bright House Networks, LLC in exchange for newly issued shares priced at $7.33 per share. Participants in the new round of equity financing include Sprint Nextel for $1.176 billion, Comcast for $196 million, Time Warner Cable for $103 million, Intel for $50 million, Eagle River for $20 million and Bright House Networks for $19 million. Closing of the equity financing is subject to certain closing conditions, including, with respect to a portion of the financing, the lapsing of the time period required under applicable law for the effectiveness of the stockholder written consent approving the transactions, which has been executed. Clearwire will receive approximately $1.057 billion in cash from the equity financing within five business days, $440 million in cash will be funded at a closing which is targeted to be completed by year end 2009, and the remaining $66 million will be funded at a closing which is targeted to be completed during first quarter 2010. The Company also announced plans to launch an offering for a minimum of $1.45 billion in new Senior Secured Notes with net proceeds to be used to pay off the company's existing $1.40 billion credit facility.
Clearwire Corporation's Clearwire Communications, LLC and Sprint Nextel Corporation to Launch 4G in Major Cities throughout Texas, North Carolina and Hawaii
Clearwire Communications, LLC, an operating subsidiary of Clearwire Corporation and Sprint Nextel Corporation announced plans to launch their respective 4G mobile Internet services in additional cities in the fourth quarter of 2009. Each of the companies will offer 4G under their own 4G brand. Clearwire and Sprint will each launch 4G service in Charlotte, Greensboro and Raleigh, North Carolina; Austin, Dallas/Fort Worth and San Antonio, Texas in November.
Clearwire Corporation's Clearwire Communications, LLC, Comcast Corp. and Sprint Nextel Corporation to Launch 4G in Chicago, Philadelphia and Seattle
Clearwire Corporation's Clearwire Communications, LLC, Comcast Corp. and Sprint Nextel Corporation announced plans to launch their respective 4G mobile Internet services in additional cities in the fourth quarter of 2009. Each of the companies will offer 4G under their own 4G brand. Clearwire, Comcast and Sprint will each launch commercial 4G service in Philadelphia in the next several weeks with official launch events and retail store openings to follow. In November, Clearwire, Comcast and Sprint will begin sales in Chicago. All three providers will begin selling in Seattle/Tacoma area in early December.
