Clearwire plans $300 million stock offering for LTE

The WiMax carrier could also raise $45 million through another sale and score additional funding from Sprint

Clearwire plans to raise as much as $345 million in stock transactions to help fund its LTE (Long Term Evolution) network deployment and other activities.

The U.S. WiMax carrier told the Securities and Exchange Commission on Monday that it will offer $300 million of its Class A common stock and also grant the underwriters of the offering an option to buy as much as $45 million of Class A shares. It plans to use the proceeds to deploy its planned LTE network alongside its existing WiMax infrastructure, and for network maintenance and operation and other purposes.

Clearwire also stands to bring in additional funds from Sprint Nextel, its majority owner and main wholesale partner. Sprint has agreed to exercise its rights with respect to the offering, which will allow it to purchase Class B shares in Clearwire and a wholly owned subsidiary, Clearwire Communications, in a separate private transaction.

Formed as a joint venture in 2008, Clearwire built the first national 4G network in the U.S. but now faces better-funded rivals in Verizon Wireless and AT&T, which are deploying LTE networks. LTE has replaced WiMax as the primary choice for 4G around the world, which should inspire vendors to build more devices for the newer system. Clearwire has said it would need to raise about $600 million to build an LTE network.

The offering was announced at a relatively bright moment for Clearwire. Last Thursday, Sprint and Clearwire announced a series of deals worth as much as $1.6 billion, including payments by Sprint for use of Clearwire's WiMax and LTE networks and a possible Sprint equity investment in Clearwire. The companies said that if Clearwire could raise new equity of between $400 million and $700 million, Sprint would participate in the funding by investing as much as $347 million.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Join the PC World newsletter!

Error: Please check your email address.

Tags business issues4gtelecommunicationCarrierssprint nextelClearwireinvestments

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?