$500m (+100m) 2nd lien sen cb coming 2nite from JPM. Terms: 30yr 8-8.5% up 17.5-22.5%, nc7y, puts 7, 15, 20, 25. Cncrnt combined $675m sec/str8 deal. UOP=gcp. 54% owner Sprint has 30d option on $585m add’l cb. Cap/raise will fill s/t funding gap & take pop/coverage to 120m from 103m. Add’l funding needed further build out w/spectrum sale possible. Pari w/500m 2nd lien str8 but behind 2.976B 1st lien. very thin brw, v/real risk of upsize given funding needs, VZ to enter 4G mkt & these will crunch on way up. Big x/over demand w/obv equity seitch & if your view is that either Sprint/Cap mkts &/or Specrum continue to fund biz, then it is Clear you should play. Model worthless, technicals/view relevant
Development stage broadband services company deploying first nationwide 4G mobile broadband network
CLWR is spending heavily to deploy nationwide 4G mobile network. Liquidity a major concern. Bond & conv will address near-term, still need large amounts of add’l cash to complete build-out. Cutting costs & trying to sell spectrum to generate cash (uncertain how successful they may be). Verizon expected to launch competing 4G tech near-term. Sprint Nextel owns 54% unclear if they will provide more funding. Other debt secured.
Our assigned spread L+1200