Clearwire commences rights offering
Clearwire initiated a rights offering, announced earlier, with the filing of a registration statement with the Securities and Exchange Commission.
Clearwire said it is distributing, at no charge to the holders of its Class A common stock, one transferable subscription right for each share of Class A common stock owned.
Each right will be exercisable to purchase 0.4336 shares at an exercise price of $7.33 per share. The subscription rights are exercisable for up to an aggregate of 93,903,300 shares of Clearwire’s Class A common stock, the company said.
There are certain restrictions and other details, but if all of the rights are exercised, the company could raise as much as $361 million.
Clearwire said it intends to use the proceeds from the rights offering for general corporate purposes, including the deployment of Clearwire’s 4G mobile WiMAX network.