Clearwire Sells $1.33 Billion in Debt to Address Network's Cash Crunch
Stock Chart for Clearwire Corp (CLWR)
Clearwire Corp., the high-speed wireless network carrier 54-percent owned by Sprint Nextel Corp., sold $1.325 billion of bonds and exchangeable notes in a three-part offering, according to a company statement distributed today by Business Wire.
Clearwire sold the notes after last month saying it may not have enough funding to keep operating. The company issued $175 million of 12 percent first-priority senior-secured debt due in 2015, according to the statement. The debt was issued in a reopening of a November 2009 issue at a price of 105.182 cents on the dollar. Clearwire also sold $500 million of 12 percent second-priority secured debt due 2017 and $650 million of 8.25 percent exchangeable notes due 2040.
Proceeds may be used for working capital and for general corporate purposes, Kirkland, Washington-based Clearwire said. The company earlier marketed $500 million of exchangeable notes.
Clearwire is rated CCC by Standard & Poor’s, according to data compiled by Bloomberg.
The notes were issued through the company’s Clearwire Communications LLC unit, according to the statement.
To contact the editor responsible for this story: Alan Goldstein at email@example.com
Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.