Clearwire (NASDAQ: CLWR) will go ahead and take an $80 million draw provided by a financing agreement with Sprint Nextel (NYSE:S), Clearwire announced today.
The money will come in the form of notes exchangeable for Clearwire common stock at $1.50 per share, a price that could be adjusted under certain conditions pursuant to the financing agreements with Sprint. Clearwire has not yet determined whether it will take any future draws under the agreements. According to The Wall Street Journal, Clearwire took an $80 million allotment for March and today's announcement covers April.
Clearwire further said today that its fiduciary duties mandated discussions with DISH Network (NASDAQ:DISH) regarding the satellite TV provider's unsolicited proposal to buy the wireless network. DISH's proposal is a counteroffer to Sprint's proposal to purchase the outstanding Clearwire shares that Sprint does not already own.
Those discussions with DISH have been going on over the last three months and will continue until Clearwire can determine "the course of action that it believes is in the best interests of Clearwire's non-Sprint Class A stockholders," Clearwire said in its announcement.