New Issue: Clearwire sells upsized $920 million add-on to 12% notes due 2015 to yield 12½%

By Paul A. Harris

St. Louis, Nov. 24 - Clearwire Communications LLC priced a massively upsized $920 million add-on to its 12% senior secured notes due Dec. 1, 2015 (Caa1/B-/) at 97.945 to yield 12½% on Tuesday, according to an informed source.

The quick-to-market deal priced slightly cheap to the 98.00 price talk.

The add-on came less than one week after the Kirkland, Wash.-based wireless broadband services provider priced the $1.6 billion original issue, which priced at 97.921 to yield 12½% on Nov. 18.

J.P. Morgan Securities Inc. ran the books for the Tuesday add-on, which was upsized from $540 million.

Proceeds will be used for general corporate purposes.

Issuer:	Clearwire Escrow Corp. (to be assumed by Clearwire Communications LLC) and Clearwire Finance, Inc.
Face amount:	$920 million, increased from $540 million
Proceeds:	$901,094,000
Maturity:	Dec. 1, 2015
Security description:	Add-on to 12% senior secured notes
Bookrunner:	J.P. Morgan Securities Inc.
Coupon:	12%
Price:	97.945
Yield:	12½%
Spread:	1,007 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Dec. 1, 2012, then callable at 106.0, 103.0, par on and after Dec. 1, 2014
Equity clawback:	35% at 112.0 until Dec. 1, 2012
Change-of-control put:	101%
Trade date:	Nov. 24
Settlement date:	Dec. 9
Ratings:	Moody's: Caa1
	Standard & Poor's: B-
Distribution:	Rule 144A for life
Price talk:	98.00
Original issue:	$1.6 billion priced at 97.921 to yield 12½% on Nov. 18

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