US WiMAX services provider Clearwire has priced its offering of US$300m in 14.75% senior secured notes due 2016 at an issue price of 100.
In a statement, Clearwire said that the sale of the notes is expected to be completed on 27 January.
The lead…
US WiMAX services provider Clearwire has priced its offering of US$300m in 14.75% senior secured notes due 2016 at an issue price of 100.
In a statement, Clearwire said that the sale of the notes is expected to be completed on 27 January.
The lead bookrunner for the offering is JP Morgan. Jefferies and Bank of America are also bookrunners.
The WiMAX provider expects to use the net proceeds of the offering for its deployment of mobile LTE technology alongside its existing WiMAX technology, as well as for network operation and maintenance and general corporate purposes.
Ratings agency Moody’s gave the issue a B3 rating.
A Moody’s SVP, Dennis Saputo, said: “Clearwire’s note offering, in addition to the common equity recently raised, provides the company with much-needed capital to begin its deployment of LTE as well as to cover its high fixed costs.”
Clearwire also released preliminary results for Q4 2011 yesterday.
These showed estimated quarterly revenues of US$362m. Clearwire also said it expected that the number of the company’s wholesale subscribers had grown by 11% from Q3 to reach 9.1m.
Clearwire estimated its total number of subscribers – wholesale and retail – at the end of 2011 to be 10.4m.
