Clearwire to Offer Stock in Bid to Raise Capital
Clearwire today announced plans to raise approximately $300 million from a public offering of Class A Common stock. Clearwire said that it plans to use any funds raised through the offering for general corporate purposes, as well as to help build its planned Long Term Evolution 4G mobile data network alongside its existing WiMax network. The funds will also be used to help operate and maintain both networks. The offering is being underwritten by J.P. Morgan, BofA, Merrill Lynch, and Jefferies & Company. Clearwire recently announced that it will receive up to $1.6 billion from Sprint over the next few years as the two companies transition from WiMax to Long Term Evolution 4G. Clearwire has struggled to find funding for the last 12 months, and through most of 2011 ceased new market rollouts and reduced its product offerings.