Clearwire (Nasdaq: CLWR) looks to be making steps to secure its financial future announcing today plans to offer $300 million in Class A stock, plus up to $45 million more to underwriters. The move helps push Clearwire closer to its $400 million to $700 million in funding needs that if met would trigger up to $347 million in additional funding from parent company Sprint Nextel (S).
The stock offer comes days after Clearwire avoided a potential default on an interest payment and secured its near-term future through a new agreement with Sprint Nextel. The deal also guaranted the availability of WiMAX services through at least 2015 and tied Sprint Nextel into Clearwire’s TDD-LTE plans.
Clearwire said it would use proceeds from the offering for general corporate purposes and working capital, including plans to begin deploying LTE technology across its network. JPMorgan Chase, Merrill Lynch and Jefferies & Co. are acting as joint book-running managers for the proposed offering.
In a separate transaction tied to today’s offering, Sprint Nextel exercised its rights to purchase shares of Clearwire’s Class B stock and a corresponding amount of Class B Common Interests in Clearwire subsidiary Clearwire Communications.
Clearwire’s stock was trading at $2.25 per share at the close of Monday, an increase of just over 5% for the day.
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