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3
.
S
trate
g
ic Transactions
Priv
a
te P
la
cemen
t
On November 9, 2009, we entered into an investment a
g
reement, which we refer to as the Investmen
t
A
greement, w
i
t
h
eac
h
o
f
Spr
i
nt, Comcast Corporat
i
on, w
hi
c
h
we re
f
er to as Comcast, Inte
l
Corporat
i
on, w
hi
c
h
w
e
r
efer to as Intel, Time Warner Cable Inc., which we refer to as Time Warner Cable, Bri
g
ht House Networks, LLC,
which we refer to as Bri
g
ht House, and Ea
g
le River Holdin
g
s LLC, which we refer to as Ea
g
le River, who w
e
c
o
ll
ect
i
ve
l
yre
f
er to as t
h
e Part
i
c
i
pat
i
ng Equ
i
ty
h
o
ld
ers, prov
idi
ng
f
or a
ddi
t
i
ona
l
equ
i
ty
i
nvestments
b
yt
h
e
P
articipatin
g
Equit
y
holders and new debt investments b
y
certain of these investors. The Investment A
g
reement
s
ets forth the terms of the transactions pursuant to which the Participatin
g
Equit
y
holders will invest in Clearwire
Communications an aggregate of approximately
$
1.564 billion in exchange for 213,369,711 shares of Clearwir
e
Commun
i
cat
i
ons non-vot
i
n
g
C
l
ass B equ
i
t
yi
nterests an
d
C
l
earw
i
re Commun
i
cat
i
ons vot
i
n
gi
nterests, w
hi
c
h
w
e
r
efer to as the Private Placement, and the investment b
y
certain of the Participatin
g
Equit
y
holders in senior secure
d
n
otes, discussed below, which we refer to as the Rollover Notes, in re
p
lacement of e
q
ual amounts of indebtedness
un
d
er t
h
e sen
i
or term
l
oan
f
ac
ili
t
y
t
h
at we assume
df
rom O
ld
C
l
earw
i
re, w
hi
c
h
we re
f
er to as t
h
e Sen
i
or Term Loa
n
Fac
ili
t
y
.
Additionall
y
, on November 24, 2009, Clearwire Communications completed an offerin
g
of $1.85 billion
12% senior secured notes due 2015 (includin
g
the Rollover Notes), followed b
y
a second offerin
g
of $920 million
12% senior secured notes due 201
5
that closed on December 9, 2009, which we refer to collectively as the Senio
r
S
ecure
d
Notes. See Note 10, Lon
g
-term De
b
t
.
Th
ePr
i
vate P
l
acement was to
b
e consummate
di
nt
h
ree c
l
os
i
ngs. On Novem
b
er 9, 2009, t
h
e Part
i
c
i
pat
i
n
g
Equit
y
holders contributed in a
gg
re
g
ate approximatel
y
$1.057 billion in cash in exchan
g
e for 144,231,268
Clearwire Communications non-votin
g
Class B equit
y
interests, which we refer to as Clearwire Communications
C
l
ass B Common Interests, an
d
C
l
earw
i
re Commun
i
cat
i
ons vot
i
ng
i
nterests, w
hi
c
h
we re
f
er to as C
l
earw
i
r
e
Communications Votin
g
Interests, pro rata based on their respective investment amounts. We refer to this closin
g
a
s
t
he First Investment Closin
g
. On December 21, 2009, the Participatin
g
Equit
y
holders contributed in a
gg
re
g
at
e
approximately
$
440.3 million in cash in exchange for 60,066,822 Clearwire Communications Class B Common
Interests an
d
C
l
earw
i
re Commun
i
cat
i
ons Vot
i
n
g
Interests. We re
f
er to t
hi
sc
l
os
i
n
g
as t
h
e Secon
d
Investmen
t
Closing. The remaining approximately
$
66.5 million to be contributed under the Investment Agreement will clos
e
when certain financial information is provided to Sprint for use in its financial reporting with respect to the fiscal
y
ear en
di
n
g
Decem
b
er 31, 2009. We re
f
er to t
h
e consummat
i
on o
f
t
hi
s purc
h
ase as t
h
eT
hi
r
d
Investment C
l
os
i
n
g
.
I
nt
h
ePr
i
vate P
l
acement, t
h
e Part
i
c
i
pat
i
ng Equ
i
ty
h
o
ld
ers agree
d
to
i
nvest
i
nC
l
earw
i
re Commun
i
cat
i
ons a tota
l
of $1.564 billion in exchan
g
e for Clearwire Communications Class B Common Interests and Clearwire Commu
-
ni
cat
i
ons Vot
i
ng Interests
i
nt
h
e
f
o
ll
ow
i
ng amounts (
i
nm
illi
ons, except
f
or Interests):
I
n
ves
t
or
I
n
ves
tm
e
nt
I
nt
e
r
es
t
s
Spr
i
nt...................................................
$
1
,
176.0 160
,
436
,
56
2
C
omcas
t
.
...............................................
.
196.0 26
,
739
,
42
7
T
ime Warner Cabl
e
.
....................................... 103.0 14
,
0
5
1
,
84
1
B
ri
g
ht House
.............................................
19.0 2,
5
92,08
7
I
n
tel
....................................................
5
0.0 6,821,282
Ea
gl
eR
i
ver
..............................................
20.0 2,728,512
$
1
,
564.0 213
,
369
,
71
1
I
mme
di
ate
ly f
o
ll
ow
i
n
g
t
h
e rece
i
pt
by
t
h
e Part
i
c
i
pat
i
n
g
Equ
i
t
yh
o
ld
ers o
f
C
l
earw
i
re Commun
i
cat
i
ons C
l
ass B
Common Interests and Clearwire Communications Voting Interests, each of the Participating Equityholders agree
d
89
CLEARWIRE CORPORATION AND
S
UB
S
IDIARIE
S
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)