I Can See Clearwire Now

Clearwire LLC (Nasdaq: CLWR) stockholders have approved the carrier's mobile WiMax asset merger with Sprint Corp. (NYSE: S), clearing the way for the creation of a "new" wireless broadband carrier in the U.S.

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

joset01 12/5/2012 | 3:26:31 PM
re: I Can See Clearwire Now Asked CLWR about this, will update when I have an answer for you.

materialgirl 12/5/2012 | 3:26:31 PM
re: I Can See Clearwire Now The approval was for an "amended and restated" credit plan. It was for $3.2B. Given today's environment, does this imply $2.0B?
freetoair 12/5/2012 | 3:26:30 PM
re: I Can See Clearwire Now Of course this would be approved as was no way forward otherwise and other triggers pending this.

Yet interesting to see the Market reaction. While it was a down day (again) CLWR moved pretty hard down on what you would think is good news that might bouy it a bit.

Down 33% to a new low around $4.
joset01 12/5/2012 | 3:26:30 PM
re: I Can See Clearwire Now Not related to the $3.2B funding, a spokesperson says:

"No. The amended and restated credit plan is tied to CLWRGÇÖs existing debt."


wimaxed 12/5/2012 | 3:26:29 PM
re: I Can See Clearwire Now This is great news for the WiMAX technology. One thing I don't understand is why the Clearwire stocks plunged after the announcement.

joset01 12/5/2012 | 3:26:28 PM
re: I Can See Clearwire Now Horrible day for the market and there appears to be some fear of how far the "new" CLWR shares will drop when they start trading on all the message boards, they're due to start trading at $17. It's a wierd one for sure.

gbmorrison 12/5/2012 | 3:26:20 PM
re: I Can See Clearwire Now Oops subject line should have ready 2009
gbmorrison 12/5/2012 | 3:26:20 PM
re: I Can See Clearwire Now WiMax under this is to reach 120M people by end of 2009 right? It says end of year but that doesn't mean 5 weeks from now?
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