Clearwire Scores $1B Loan
Wireless Internet Provider to Refinance Debut, Expand Operations
-- Multichannel News, 7/5/2007 1:23:00 PM
Wireless high-speed-Internet provider Clearwire secured a $1 billion loan that it will use to refinance its debt and expand operations.
Clearwire closed and funded its first tranche of a fully committed $1 billion senior secured-term loan, with the remainder to be funded on a delayed-draw basis in about 45 days.
The transaction was led by Morgan Stanley, Merrill Lynch, JP Morgan and Citigroup.
By refinancing its existing debt, virtually all of Clearwire’s debt is extended to a five-year maturity.
The company, founded by mobile-phone pioneer Craig McCaw, recently unveiled distribution agreements with DirecTV and EchoStar Communications, which will offer its high-speed-data service as part of their bundles.
“Clearwire continues to develop a broader following on Wall Street,” Christopher Harland, vice chairman of institutional securities and chairman of global media and communications at Morgan Stanley, said in a prepared statement. “This financing demonstrates Clearwire’s continuing ability to strategically access the capital markets on terms it finds favorable.”
