Clearwire Corp. (CLWR, Financial) filed Quarterly Report for the period ended 2010-03-31.
Clearwire Corp. has a market cap of $5.48 billion; its shares were traded at around $7.56 with and P/S ratio of 20. CLWR is in the portfolios of Steven Cohen of SAC Capital Advisors.
We incurred $86.2 million and $50.6 million in gross interest costs during the three months ended March 31, 2010 and 2009, respectively. Interest costs were partially offset by capitalized interest of $52.4 million and $23.0 million for the three months ended March 31, 2010 and 2009, respectively. Interest expense was calculated over the periods using the effective interest method based on an effective interest rate of 13.0% for the three month ended March 31, 2010 as compared to 13.9% for the three months ended March 31, 2009.
We are currently engaged in the development and deployment of 4G mobile broadband networks throughout the United States. During 2010, we plan to develop and launch 4G mobile broadband networks in large metropolitan areas in the United States, including Boston, New York, San Francisco and Washington, D.C. We expect that the combination of our existing 4G markets, new market deployment and existing market conversions will allow us to cover up to approximately 120 million people with our 4G mobile broadband networks by the end of 2010. However, our actual network coverage by the end of 2010 will largely be determined by our ability to successfully manage ongoing development activities and our performance in launched markets. We currently expect a full year 2010 cash spend of $2.8 billion to $3.2 billion.
In the fourth quarter of 2009, we secured financing of $4.34 billion as the result of the Private Placement and the issuance of the Senior Secured Notes. We received aggregate proceeds of $4.27 billion in the fourth quarter of 2009, and an additional $66.5 million from the third investment closing of the Private Placement in March 2010. The debt issuance allowed us to retire our existing Senior Term Loan Facility and to extend the maturity of our debt until 2015. We expect the remaining net cash proceeds of approximately $2.70 billion from this investment and debt financing to primarily be used to expand our 4G mobile broadband networks in the United States, for spectrum acquisitions and for general corporate purposes. As of March 31, 2010, we had available cash and short-term investments of approximately $3.0 billion. As of March 31, 2010, we believe that we held sufficient cash and short-term investments to provide us with our required liquidity for at least 12 months.
In the fourth quarter of 2009, we distributed subscription rights at a price of $7.33 per share that are exercisable for up to 93,903,300 shares of our Class A common stock, which we refer to as the Rights Offering. Included in this amount are 44,696,812 shares issuable upon the exercise of rights to be issued to certain stockholders who, on their own behalf, have agreed not to exercise or transfer any rights they receive pursuant to the Rights Offering, subject to limited exceptions. As of March 31, 2010, we have received approximately $798,000 from the Rights Offering. The proceeds from the Rights Offering, less fees and expenses incurred in connection with the Rights Offering, will be used for general corporate purposes, including the deployment of our 4G mobile WiMAX network. We cannot be certain that we will receive any further proceeds from the Rights Offering.
Net cash provided by financing activities increased $50.3 million for the three months ended March 31, 2010 as compared to the same period in 2009 due primarily to cash contributions of $66.5 million, net of $2.3 million of transactions costs, from our Participating Equityholders, which was partially offset by the payment of debt financing fees related to our Senior Secured Notes which funded during the fourth quarter of 2009.
Read the The complete Report
Clearwire Corp. has a market cap of $5.48 billion; its shares were traded at around $7.56 with and P/S ratio of 20. CLWR is in the portfolios of Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
During November 2009, we entered into agreements to raise a total of $4.336 billion, which included a $1.564 billion equity investment, which we refer to as the Private Placement, from Sprint Nextel Corporation, which we refer to as Sprint, Intel Corporation, which we refer to as Intel, Comcast Corporation, which we refer to as Comcast, Time Warner Cable Inc., which we refer to as Time Warner Cable, Eagle River Holdings, LLC, which we refer to as Eagle River, and Bright House Networks, LLC, which we refer to as Bright House Networks, and who we collectively refer to as the Participating Equityholders, and gross proceeds of $2.772 billion from a debt issuance, which we refer to as the Senior Secured Notes. The debt issuance allowed us to retire our existing indebtedness under our Senior Term Loan Facility and extend the maturity of our outstanding debt to 2015. We intend to use the net proceeds of this new financing to continue the expansion of our 4G mobile broadband networks.We incurred $86.2 million and $50.6 million in gross interest costs during the three months ended March 31, 2010 and 2009, respectively. Interest costs were partially offset by capitalized interest of $52.4 million and $23.0 million for the three months ended March 31, 2010 and 2009, respectively. Interest expense was calculated over the periods using the effective interest method based on an effective interest rate of 13.0% for the three month ended March 31, 2010 as compared to 13.9% for the three months ended March 31, 2009.
We are currently engaged in the development and deployment of 4G mobile broadband networks throughout the United States. During 2010, we plan to develop and launch 4G mobile broadband networks in large metropolitan areas in the United States, including Boston, New York, San Francisco and Washington, D.C. We expect that the combination of our existing 4G markets, new market deployment and existing market conversions will allow us to cover up to approximately 120 million people with our 4G mobile broadband networks by the end of 2010. However, our actual network coverage by the end of 2010 will largely be determined by our ability to successfully manage ongoing development activities and our performance in launched markets. We currently expect a full year 2010 cash spend of $2.8 billion to $3.2 billion.
In the fourth quarter of 2009, we secured financing of $4.34 billion as the result of the Private Placement and the issuance of the Senior Secured Notes. We received aggregate proceeds of $4.27 billion in the fourth quarter of 2009, and an additional $66.5 million from the third investment closing of the Private Placement in March 2010. The debt issuance allowed us to retire our existing Senior Term Loan Facility and to extend the maturity of our debt until 2015. We expect the remaining net cash proceeds of approximately $2.70 billion from this investment and debt financing to primarily be used to expand our 4G mobile broadband networks in the United States, for spectrum acquisitions and for general corporate purposes. As of March 31, 2010, we had available cash and short-term investments of approximately $3.0 billion. As of March 31, 2010, we believe that we held sufficient cash and short-term investments to provide us with our required liquidity for at least 12 months.
In the fourth quarter of 2009, we distributed subscription rights at a price of $7.33 per share that are exercisable for up to 93,903,300 shares of our Class A common stock, which we refer to as the Rights Offering. Included in this amount are 44,696,812 shares issuable upon the exercise of rights to be issued to certain stockholders who, on their own behalf, have agreed not to exercise or transfer any rights they receive pursuant to the Rights Offering, subject to limited exceptions. As of March 31, 2010, we have received approximately $798,000 from the Rights Offering. The proceeds from the Rights Offering, less fees and expenses incurred in connection with the Rights Offering, will be used for general corporate purposes, including the deployment of our 4G mobile WiMAX network. We cannot be certain that we will receive any further proceeds from the Rights Offering.
Net cash provided by financing activities increased $50.3 million for the three months ended March 31, 2010 as compared to the same period in 2009 due primarily to cash contributions of $66.5 million, net of $2.3 million of transactions costs, from our Participating Equityholders, which was partially offset by the payment of debt financing fees related to our Senior Secured Notes which funded during the fourth quarter of 2009.
Read the The complete Report
