Clearwire Corp. will offer $300 million in Class A common stock in a public offering. Clearwire plans to grant underwriters a 30-day option to purchase up to an additional $45 million of the same stock. J.P. Morgan, BofA Merrill Lynch & Co., Inc., and Jefferies & Co., Inc., are acting as joint book-running managers for the proposed offering.
Sprint Nextel Corp. has agreed to exercise its pro rata preemptive rights with respect to the offering. Upon such an exercise, Sprint will purchase, in a separate, private transaction, only shares of Clearwire's Class B common stock and a corresponding number of Class B common interests in Clearwire's wholly-owned subsidiary, Clearwire Communications, LLC.
The company plans to use the net proceeds for general corporate and working capital purposes, including the deployment of mobile 4G LTE and 4G WiMAX technologies as well as for network operation and maintenance.