Clearwire Corp. has registered for a $361 million rights offering to use for general corporate purposes, including rolling out its next-generation wireless network. The company (Nasdaq: CLWR), of which Sprint Nextel Corp. (NYSE: S) is majority owner, said the registration statement was effective on Monday and would offer holders of its Class A common stock a transferable subscription right to buy 0.4336 shares for $7.33 a share. The number of rights are capped at almost 216.6 million, which could be exercised until June 21 for as many as 93.9 million common shares. Clearwire could extend the expiration date.
If all the rights were exercised, the total purchase price would be about $361 million, the release said. The rights will be listed on the Nasdaq exchange under the symbol “CLWRR.”
Clearwire, based in Kirkland, Wash., is rolling out a WiMax network, which offers ultrafast mobile Internet service. It offers service in 27 markets and hopes to reach 80 markets by the end of 2010.
Companies such as Overland Park-based Sprint can resell the service under their brands. Sprint joined other big-name investors to boost Clearwire’s WiMax effort a year ago. Sprint’s investment at the time was valued at $7.4 billion, in the form of spectrum and WiMax-related assets. The company since has pledged an additional $1.2 billion to Clearwire.
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