WiMAX services provider Clearwire Corporation has increased the size of its public offering of class A common stock from US$300m to US$350m.
The offering had priced at US$2 per share to the public, with a total number of 175m shares being…
WiMAX services provider Clearwire Corporation has increased the size of its public offering of class A common stock from US$300m to US$350m.
The offering had priced at US$2 per share to the public, with a total number of 175m shares being offered.
According to Clearwire, mobile operator Sprint Nextel, which holds a 54% stake in Clearwire, will purchase approximately 172m of Clearwire’s Class B shares, as well as a corresponding number of class B common interests in Clearwire’s subsidiary, Clearwire Communications, in a private transaction.
Clearwire has also slightly increased the additional amount that its underwriters can acquire, from US$45m to US$52.5m or 26.25m shares of class A common stock. The underwriters have a 30-day option to acquire these shares.
In its statement, Clearwire did not give a reason for the increase in the public offering. It said that the net proceeds would be used for general corporate and working capital purposes. These include “the deployment of mobile 4G LTE technology alongside the mobile 4G WiMAX technology currently on its network and for the operation and maintenance of its networks and to pay fees and expenses associated with this offering”.
It expects that the offering would close on 13 December.
Clearwire Communications is an operating subsidiary of Clearwire Corporation, which is the company making this share offering.
