Clearwire Corp. (NASDAQ: CLWR) yesterday filed a shelf registration document with the US SEC and nearly simultaneously announced that it planned to offer $300 million in class A common stock in a secondary offering. J.P. Morgan, BofA Merrill Lynch and Jefferies & Company are joint book-runners and have a 30-day option for an additional $45 million worth of the shares.
The company’s shares are down about -4% in the pre-market this morning, to $2.16.
Clearwire’s majority shareholder, Sprint Nextel Corp. (NYSE: S), has agreed to:
exercise its pro rata preemptive rights with respect to the offering and that upon such exercise, Sprint will purchase, in a separate, private transaction, only shares of our Class B Common Stock and a corresponding number of Class B Common Interests in Clearwire’s wholly-owned subsidiary, Clearwire Communications, LLC.
The company will use the money for general purposes and for the “deployment of mobile 4G LTE technology alongside the mobile 4G WiMAX technology currently on its network.” Clearwire is building out the 4G network to compete with both AT&T Inc. (NYSE: T) and Verizon Wireless, a joint venture of Verizon Communications Inc. (NYSE: VZ) and Vodafone plc (NASDAQ: VOD).
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