(RTTNews) -  Tuesday, Clearwire Corporation (CLWR: News ) said Clearwire Escrow Corporation, an unrestricted subsidiary of Clearwire Communications LLC, has priced additional debt for $920 million with a view to expand the company's high-speed internet services.

The supplemental offering of $920 million aggregate principal amount of 12% senior secured notes, due 2015, is in addition to today's offering of $1.85 billion aggregate principal amount of 12% senior secured notes due 2015.

Clearwire received about $1.057 billion in cash from the equity financing on November 13, and expects to receive an additional $440 million in cash at a second closing, which is targeted to be completed by year end 2009, and the remaining $66 million will be funded at a closing, which is targeted to be completed during first quarter 2010.

The combination bond offerings and latest equity investments provides Clearwire with over $2.8 billion of incremental capital and retires prior $1.4 billion loan facility.

On November 10, Clearwire said it has executed a definitive deal to raise $1.564 billion in new investment capital from Sprint Nextel Corp., Comcast Corp., Time Warner Cable Inc., Intel Corp. Eagle River Holdings, LLC and Bright House Networks, LLC in exchange for newly issued shares priced at $7.33 per share.
The gross proceeds of this new debt offering will be placed in an escrow account until the consummation of the closing of the second phase of the $1.564 billion of new investment capital. Upon release of the escrow, the company intends to use the proceeds for general corporate purposes.

The notes will be issued in a private offering to qualified institutional buyers. The notes will be senior secured obligations and will be guaranteed by certain of Clearwire Communications' wholly owned domestic subsidiaries.

The sale of the new notes is expected to be consummated on or about December 9, subject to customary closing conditions.

CLWR declined $0.12 or 2.16% and closed Tuesday's regular trading session at $5.43. After hours, CLWR rose $0.03 or 0.55% and traded at $5.46.

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by RTT Staff Writer

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