Always-on-the-financial-brink WiMAX provider Clearwire (Nasdaq: CLWR) may have found a way to step back from the monetary ledge--at least temporarily--via a $1.1 billion offering of debt securities in private placements to "qualified institutional buyers."
The money, when raised, will be used to keep the wireless provider operating as it expands broadband wireless service for partners like Sprint (NYSE: S), Comcast (Nasdaq: CMCSA), Time Warner Cable (NYSE: TWC-WI) and Bright House Networks. While Clearwire is the primary wireless play for cable's two biggest operators, Cox Communications has recently gone its own way in the wireless business.
At the same time it was announcing its funding options, Clearwire, which has been left in the financial lurch by its partners, is at least getting some help on its board of directors where Sprint has nominated William Blessing, a consultant to Burns & McDonnell; Mufit Cinali, managing director of Springwell Capital Partners; and Hossein Eslambolchi, technical advisor to Ericsson and the University of California School of Engineering. The three would hold positions vacated by includes Sprint CEO Dan Hesse, along with division presidents Keith O. Cowan and Steven L. Elfman who left in September to avert any potential anti-trust conflicts.
- see this news release
- and this release announcing Clearwire's board nominees
Clearwire mulls funding options, in talks with T-Mobile USA
Clearwire cuts workforce, delays retail launches amid funding uncertainty
Three Sprint execs resign from Clearwire's board