Clearwire prepping $300M stock offering
The stock offering, which will be made to existing shareholders, will help the company shore up its finances as it seeks to maintain its operations and upgrade it existing network to 4G LTE.
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Clearwire is on its way to shoring up its coffers.
The mobile broadband provider and wholesaler said it is planning a public stock offering of $300 million. It's unclear how many shareholders are willing to re-up on a stock that has fallen 60 percent this year.
The funds are critical to Clearwire's continued ability to operate and upgrade its existing WiMax network to a newer technology called LTE. Last week, Sprint Nextel swooped in and saved the company by committing up to $1.6 billion in financing. Sprint, along with being the majority shareholder, is also Clearwire's largest wholesale customer.
Sprint has committed to buying enough stock in Clearwire to maintain its 49.6 percent voting interest in the company. It currently has a 54 percent economic interest in the stock.
Sprint Chief Financial Officer Joe Euteneuer earlier today said he was pleased with the new financial arrangement with Clearwire.
The company plans to make the switch to LTE to better serve companies interested in reselling its wireless service. It hopes to boost its customer base beyond Sprint. It is poised to lose its cable customers after Comcast and Time Warner Cable signed deals with Verizon Wireless.