Clearwire Raises $1.5 Billion From Sprint, Comcast And Others


Credit: Clearwire

As expected, Clearwire (NSDQ: CLWR) has received commitments of about $1.5 billion in financing from Sprint (NYSE: S) Nextel, Comcast (NSDQ: CMCSA), *Time Warner Cable*, Intel (NSDQ: INTC), Eagle River Holdings and Bright House Networks. The financing comes in exchange for newly issued shares priced at $7.33 per share. The financing is needed, Clearwire says, to aggressively build out its 4G WiMAX network.

Among Clearwire’s backers, Comcast and Sprint have been the most active in rolling out their respective 4G services. TWC and Bright House have been seen as lagging, but that is likely to change with this financing. Participation by Google (NSDQ: GOOG) in this round was considered unlikely, and sure enough, it did not play a role. Release

In terms of the breakdown, Sprint Nextel is contributing $1.176 billion, along with $196 million from Comcast, $103 million from TWC, $50 million from Intel, $20 million from Eagle River and $19 million from Bright House. Clearwire, which is set to report Q3 earnings later this afternoon, will receive approximately $1.057 billion in cash from the equity financing within five business days. About $440 million in cash will close by the end of the year, while the remaining $66 million will be funded during first quarter 2010.

In addition to raising funds from the company’s joint venture partners, Clearwire also said it intends to launch a common stock offering to holders of its class A. Each right will be exercisable for about 0.4336 shares of class A stock at a per share price of $7.33. Clearwire will file a registration statement with the SEC within the next 30 days with more details, including which shareholders will qualify. The offering will be open for a six-month period. Release.

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