Clearwire accepts $80 million from Sprint, DISH still in the game
Sprint Nextel's $80 million provide additional financing to Clearwire in the form of exchangeable notes, which will be exchangeable under certain conditions for Clearwire common stock at $1.50 per share, subject to adjustment under certain conditions. Clearwire no longer has any right to take the first two monthly draws under the Sprint Financing Agreements.
The Special Committee has not made any determination as to whether to take any future draws under the Sprint Financing Agreements and has not made any determination to change its recommendation of the current Sprint transaction.
Clearwire received an unsolicited, non-binding proposal from DISH, which was a preliminary indication of interest. Consistent with its fiduciary duties to Clearwire's non-Sprint class A stockholders, the Special Committee of Clearwire's board of directors has engaged in discussions with DISH concerning its proposal and with Sprint over the course of the last two months, and the Special Committee intends to continue such discussions.
Clearwire and Sprint have amended the Sprint Financing Agreements to remove the condition to Sprint's obligation to provide financing for the last three draws that an agreement has been reached between Sprint and Clearwire on the accelerated build out of Clearwire's wireless broadband network. This amendment will allow Clearwire, at its option, to take the last three draws under the Sprint Financing Agreements whether or not an accelerated build out agreement has been entered into by the parties. ■