Clearwire secures $1B loan

Clearwire Corp. said it completed the process for a $1 billion secured term loan to refinance existing debt and support expansion plans.
The Kirkland, Wash.-based company, which was founded in late 2003 by wireless industry veteran Craig McCaw, has been winning some major deals of late. In late July, it jointly announced a partnership with Sprint Nextel Corp. to collaborate on the buildout and operation of the nation’s first mobile WiMAX network.
And last week, RCR Wireless News learned of its plan to bring Amp’d Mobile Inc.’s 50-plus member content team on board to lead a new content offering under the Clearwire brand. Clearwire has declined to comment on the deal.
The infusion of cash could be just what Clearwire needs as it tries to reverse its losses associated with construction and deployment of wireless networks in new markets and subscriber acquisition costs. The company reported a $70.2 million lost in the last quarter.
Clearwire’s stock has steadily dropped from a peak of about $34 in late July on news of the Sprint deal to $22.27 today. Morgan Stanley, Merrill Lynch, JP Morgan and Citigroup led the $1 billion loan transaction.