Wifi Revolution

Clearwire Corp. has expanded its secured term loan by $250 million, to an aggregate of $1.25 billion, to fund expansion plans, spectrum acquisitions and for general corporate purposes.

“Following the close of our $1 billion term loan in August, we received inquiries from investors who were interested in securing larger positions in our bank debt. This tack on facility helps meet investor demand and provides capital to fund the development and launch of new markets and the acquisition of additional spectrum,” said John Butler Clearwire’s chief financial officer, in a statement.

Founded in 2003, Clearwire is a provider of portable wireless high-speed Internet service. Clearwire customers connect to the Internet using licensed spectrum, thus eliminating the confines of traditional cable or phone lines.

The wireless service provider said financial terms of the expansion are the same as the term loans it closed in July and August. In August it closed a $1 billion term loan.

 

Morgan Stanley and Wachovia acted as Joint-Lead Arrangers and Joint Bookrunners for the transaction.

Clearwire is looking for many ways to expand. Run by wireless pioneer Craig McCaw, Clearwire is said to be talking with Sprint (News - Alert) Nextel Corp to merge its broadband unit.

According to one report published by Wall Street Journal, Sprint and Clearwire agreed this summer to connect their high-speed networks based on WiMax.

Sprint and Clearwire announced the JV in September, saying they would collaborate to build a WiMax network covering 100 million people. The deal was supposed to have been finalized in September, but it is not yet complete.

Narayan Bhat is a contributing editor for TMCnet. To read more Bhat’s articles, please visit his TMCnet columnist page.

 

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