Sprint and Clearwire agree to unlimited 4G mobile WiMAX service
Clients Sprint Nextel Corporation
Jones Day represented Sprint Nextel Corporation ("Sprint") in the Fall of 2011 with respect to the out-of-court restructuring and equity raise of Clearwire Corp. and Clearwire LLC (collectively "Clearwire"). Clearwire, Sprint's primary source of 4G cellular coverage, needed financing to convert its 4G wireless network from WiMAX to LTE. Absent the requisite funding, it was widely believed that Clearwire would file for bankruptcy. Under its agreement with Sprint, Sprint agreed to provide up to $1.6 billion in financial commitments and support, giving Clearwire the ability to raise additional funds from debt and equity offerings. Clearwire ultimately completed a rights offering (raising a net amount of approximately $713.5 million) and obtained an additional $300 million in debt.