Printed from http://www.electronista.com

Clearwire to sell $1.1B of debt to stay afloat

updated 12:40 pm EST, Thu December 2, 2010

Clearwire plans on selling secured debt notes

Following last month's announcement that it will lay off workers in order to save money, Clearwire is now planning to sell at least $1.1 billion of debt. Wells Fargo & Co. analyst Jennifer Fritzsche believes this is the best resolution for Sprint, which owns 54 percent of Clearwire, as it does not have to put up capital to help out the struggling Clearwire.

The funds raised from the sale may also allow Clearwire to expand its customer base from 25 million to 30 million customers next year, Fritzsche added. In a statement, Clearwire said it is considering offering $175 million of first-priority senior secured notes due in 2015, $500 million of second-priority secured notes due 2017 and $500 million of exchangeable notes due 2040.

At the start of November, Clearwire said in an SEC filing that it was facing losses and didn't know where its future funding will come from, which may lead to its inability to continue operating a viable business. As a result, it began cutting 15 percent of its workforce, reducing sales and marketing expenses and delaying its own-brand smartphone service in order to save between $100 and $200 million in 2010. [via BusinessWeek]



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Thecus N2310 NAS

For every computer user, there comes a point of critical mass in data storage. When it hits, external hard drives, USB sticks and DVD ...

iRig Pads

When it comes to mobile music products, IK Multimedia has positioned itself as one of the top suppliers. Right from the early days of ...

DoxieGo Portable Scanner

Sometimes, people need to scan things, but having a computer at hand to do so isn't exactly feasible. Maybe it's the home of a relativ ...

Sponsor

toggle

Most Commented

 
toggle

Popular News