Clearwire Corp. said Wednesday it will seek to amend its $1.25 billion senior secured term loan to facilitate a deal with Sprint Nextel Corp. and to permit additional debt and investments.
According to a filing with the Securities and Exchange Commission, if acceptable terms cannot be reached, Clearwire will seek to refinance the facility. Clearwire also may seek to raise additional debt or equity financing.
Last month, Clearwire and Sprint Nextel said they will resurrect their plan to offer high-speed mobile Internet service.
The two companies will combine their wireless broadband units to create a $14.55 billion communications company, to be called Clearwire, that will continue developing a mobile network based on WiMax technology.
WiMax is similar to the WiFi service found in coffee shops, airports and many homes but more powerful _ and able to cover whole cities, in some cases.
After a similar agreement fell through last November, the duo said it is getting help from a group of outside investors, including Intel Corp., Google Inc., Comcast Corp., Time Warner Cable Inc. and Bright House Networks, who will kick in $3.2 billion for the new company.
Clearwire shares dropped 75 cents, or 5.4 percent, to $13.07 in midday trading. Shares have traded between $10.10 and $35.41 in the past 12 months.
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