Clearwire (CLWR) Announces Plans To Amend $1.25B Loan Facility

June 11, 2008 11:39 AM EDT

Clearwire Corporation (Nasdaq: CLWR) issued a press release, announcing that it plans to seek to amend its $1.25 billion senior secured term loan facility to modify certain covenants, including, but not limited to, those that will permit the combination with Sprint Nextel Corporation’s wireless broadband business and to permit the incurrence of additional debt and investments.

Clearwire initially entered into the senior secured term loan facility on July 3, 2007 for an amount of $1 billion and amended the facility on November 2, 2007 to incrementally increase the size to $1.25 billion. If the Company cannot amend the facility on terms it finds acceptable, it will seek to refinance the facility. In addition, the Company continues to evaluate the capital markets and may seek to raise additional debt or equity financing in the future, in both the short-term and the long-term, to continue to fund its liquidity needs and capital resource requirements. There can be no assurances that the Company will successfully amend its senior secured term loan facility to permit the combination with Sprint Nextel or to incur additional debt or on satisfactory terms, or that the Company will be able to obtain debt or equity financing, if required, sufficient to satisfy its capital resource requirements.

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