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Clearwire Shoots for Another $361M

Dan Jones
LR Mobile News Analysis
Dan Jones, Mobile Editor
12/22/2009

Clearwire LLC (Nasdaq: CLWR) is trying to score another $361 million as it continues with the deployment of a mobile WiMax network across the U.S.

The Kirkland, Wash., company has registered for a $361 million rights offering, effective Monday (Dec. 21), offering the holders of its Class A common stock the right to buy 0.4336 shares for $7.33 each. The number of rights are capped at almost 216.6 million, which could be exercised until June 21 for as many as 93.9 million common shares. (See Clearwire Starts Rights Offering.)

If all the rights are exercised, the total purchase price will be about $361 million, Clearwire states. The rights will be listed on the Nasdaq exchange under the symbol "CLWRR." The company first announced that it was going for a rights offering on its third-quarter earnings call in November. (See Clearwire Starts Rights Offering and Clearwire: 'Google Believes in Us'.)

At a possible $361 million, the offering would represent another significant chunk of change for Clearwire, which recently raised an extra $2.8 billion through equity and debt financing. When the company announced an additional $920 million in debt funding in late November, it said it had enough money to cover its target of deploying a WiMax network that spans 120 million people by the end of 2010. (See Clearwire Grabs $920M More Funds.) The company isn't offering any guidance on whether the rights offering will mean new markets or faster deployments. The company's network currently covers around 30 million people in the U.S.

"The additional capital does give us flexibility, but we haven't made any new announcements," a spokesperson notes.

— Dan Jones, Site Editor, Unstrung

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