OVERLAND PARK (dpa-AFX) - Clearwire Corp. (CLWR) announced that it has closed its public offering of 201.25 million shares of Class A common stock at $2.00 per share. The public offering, comprised of 175 million shares of Class A common stock initially offered and an additional 26.25 million shares of Class A common stock sold pursuant to the underwriters' exercise of their over-allotment option.
Clearwire stated that the offering will provide the company with net proceeds of $384.1 million, after underwriters' discounts and commissions.
In addition, Sprint has exercised its preemptive rights to purchase 173.64 million shares of Class B Common Stock and a corresponding number of Class B units in Clearwire Communications LLC, which will provide Clearwire with an additional $331.4 million in net proceeds. The total net new capital available to Clearwire following today's closings is $715.5 million.
On December 1, 2011, Clearwire and Sprint announced agreements whereby, among other things, Sprint committed to provide additional equity funding to Clearwire in connection with a public offering meeting certain requirements.
Clearwire noted that it plans to use the net proceeds for general corporate and working capital purposes, including the deployment of mobile 4G LTE technology alongside the mobile 4G WiMAX technology currently on its network, and for the operation and maintenance of its networks, and to pay fees and expenses associated with this offering.
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