Clearwire (CLWR) has upped the ante in its previously announced stock offering with plans now to raise an additional $50 million through the sale.
Clearwire had originally planned to offer $300 million in Class A stock, plus up to $45 million more to underwriters of the offering. The carrier is now set to offer $350 million in stock plus an additional $52.5 million to underwriters. The offering is being priced at $2 per share to the public, with the offering set to close on Dec. 13. Clearwire’s stock was trading down 5% early Thursday at $2.15 per share.
In connection, though separate, the rights offering will also see parent company Sprint Nextel chip in another $344 million through the purchase of 172 million Class B shares as well as 172 million Class B shares in Clearwire subsidiary Clearwire Communications.
Analysts noted that in total the deal puts approximately $700 million in Clearwire’s pockets that the carrier plans to use to begin rolling out LTE technology across its network. That move is seen as essential to the carrier remaining a viable player in the increasingly competitive mobile data space as well as for Sprint Nextel’s future LTE network plans.
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