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Clearwire’s Recent Financing Spree Jumps To $2.8 Billion With Additional Debt

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Clearwire (NSDQ: CLWR) said today that it has raised an additional $920 million in debt financing, adding to its war chest of cash that the company has raised over the past few weeks. Release.

In total, the company has recently raised $2.8 billion, which should be enough to put to rest some concerns that the company does not have enough capital to full fill its near-term plans. The funds now exceed the amount Clearwire previously said was needed to roll out high-speed wireless services to 120 million people by the end of 2010.

Here’s how the $2.8 billion breaks down:

—$1.564 billion came from strategic investors.
—$1.85 billion was raised in a bond offering, however, the proceeds were used to pay off existing debt of $1.4 billion. So the balance was about $360 million.
—$920 million was raised today in debt for a total of $2.8 billion. The senior secured notes are due 2015 at an issue price of 97.9 percent.

Separate from the most recent fund-raising activities, Clearwire will still have the opportunity to secure additional funding of up to $295 million in the rights offering to public shareholders.

Nov 24, 2009 9:05 PM ET

Clearwire Photo: Clearwire

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Posted In: Companies, Clearwire

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  • Victor Goulet

    Now that CLWR's technical network is proving to be effective, its capital question is answered AND it's long term viability is confirmed (otherwise it would not have been able to raise this amount of equity from it's corporate shareholders & debt from major institutions brokered by some of the best investment bankers), it will be interesting to see what new position of "doom & gloom" gets to be the next "crises" espoused by the "naysayers!"

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