I Can See Clearwire Now
Kirkland, Wash.-based Clearwire held a stockholder's meeting in Seattle today to get approval on its 2.5 GHz spectrum merger with Sprint, to be funded with $3.2 billion from Intel Corp. (Nasdaq: INTC), Google (Nasdaq: GOOG), and the cable companies by the end of the year. (See Sprint, Clearwire Create $14.5B WiMax Giant.) The company also announced it has secured consent for the transaction from a majority of its credit lenders and expects to "execute shortly an amended and restated credit agreement permitting the transactions."
This would appear to set up the deal for a Dec. 1 close. ThinkEquity LLC analyst Eric Kainer told Unstrung recently that documents around the deal call for the close on the first day of the month following shareholder approval. (See Clearwire's Closing Approaches.)
The deal's close and associated cash infusion should also free up Clearwire to start commercial launches of its mobile WiMax markets, with Portland, Ore., expected to go live first. (See Clearwire Has Cash for 'at Least' 12 Months .)
The "new" Clearwire expects to reach 120 million people with WiMax by the end of the year and 200 million by 2015. (See Clearwire: We're Ready for Primetime.)
– Dan Jones, Site Editor, Unstrung