Clearwire Secures Another $920 Million for 4G Expansion

Posted 11/30/2009 at 5:10am | by Paul Lilly

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The cash keeps coming for Clearwire, the wireless broadband provider who managed to secure another $920 million in debt to continue constructing its global 4G wireless network, InternetNews.com reports.

"With this latest tranche of additional funding, we have not only exceeded the amount of capital that we have previously stated we needed to fully fund our business plan, but we have also secured additional capital that will allow us to expand more aggressively by covering more people, and with more capacity than we had previously planned," Clearwire CEO Bill Morrow said in a statement.

The latest infusion of funds of will come from 12 percent senior secured notes, due 2015 at an issue price of 97.9 percent. Not bad, considering Clearwire already stands to receive $1.85 billion in senior secured notes in the same year.

Earlier this year, Clearwire said it needed more funding -- anywhere from $2 billion to $2.3 billion -- in order to expand its network to at least 120 million people by the end of 2010. As it stands, Clearwire's 4G network is only available in a handful of cities, including Chicago, Baltimore, Portland, and Philadelphia.

Image Credit: blog.broadcastengineering.com