Clearwire To Offer $300 Million in Stock

By Josh Long Comments
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Clearwire Corp. on Monday revealed plans to offer $300 million of Class A common stock in a registered public offering and grant the underwriters a 30-day option to buy up to an additional $45 million of stock.

The Bellevue, Wash.-based wireless operator of 4G WiMAX networks also announced its majority owner and biggest wholesale customer Sprint Nextel Corp. will purchase shares of Class B common stock and a corresponding number of Class B common interests in Clearwire's wholly-owned subsidiary, Clearwire Communications, LLC.

Clearwire said it intends "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."

Clearwire, which has been burning through cash, last week announced reaching agreements with Sprint over the next four years that are worth up to $1.6 billion.

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