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Clearwire Raises $715.5 Million to Fund Network Upgrades and Expansion
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USA based WiMAX network operator, Clearwire says that it has raised US$715.5 million from its shareholders to fund network expansion plans.
The company raised US$384.1 million from the sale of common shares, while Sprint Nextel exercised its preemptive rights and bought US$331.4 million worth of class B shares.
"This equity raise is a critical step for Clearwire to achieve its long-term business plan of creating the first wide-channel TDD-LTE 4G network in the U.S.," said Erik Prusch, president and CEO of Clearwire. "The added resources will enable us to continue delivering 4G mobile broadband service to meet the rapidly growing demand in the industry. We remain ideally and uniquely positioned to serve both wholesale and retail customers well into the future."
On December 1, 2011, Clearwire and Sprint announced agreements whereby, among other things, Sprint committed to provide additional equity funding to Clearwire in connection with a public offering meeting certain requirements. Today's exercise of preemptive rights by Sprint satisfies its commitment.
Clearwire plans to use the net proceeds for general corporate and working capital purposes, including the deployment of mobile LTE technology alongside the mobile WiMAX technology currently on its network, and for the operation and maintenance of its networks, and to pay fees and expenses associated with this offering.
Tags: [clearwire] [wimax] [USA]
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