Clearwire Corp., building out a nationwide high-speed network, will get $1.56 billion from a group led by wireless carrier Sprint Nextel Corp., easing a cash shortfall that would have held up expansion plans.

Sprint, which owns more than half of Clearwire, will contribute $1.18 billion in exchange for shares priced at $7.33 each, according to a statement today. The rest will come from Comcast Corp., Time Warner Cable Inc., Intel Corp., Eagle River Holdings LLC and Bright House Networks LLC.

Clearwire Chief Executive Officer Bill Morrow is working to expand the WiMax network, which will give carriers access to faster Web browsing on mobile phones and laptops, ahead of a rollout by rival Verizon Wireless. The shares and newly issued debt put Clearwire on target to cover as many as 120 million people by the end of next year, spokeswoman Susan Johnston said.

“Sprint’s clearly looking at Clearwire as being the vehicle to expand their wireless data network,” said Michael Nelson, an analyst at Soleil/Nelson Alpha Research in New York, who advises investors to sell Clearwire shares and doesn’t own any. “If you look at the investors involved, they’re making a significant bet that Clearwire is going to provide them with a differentiated 4G strategy.”

Clearwire plans to sell at least $1.45 billion of senior secured notes to pay off an existing $1.4 billion loan.

The six-year notes are expected to price Nov. 18, according to a person familiar with the offering who declined to be identified because the terms aren’t set.

Third-Quarter

The company reported a third-quarter net loss of $82.4 million, or 43 cents a share, wider than the pro forma net loss of $72.7 million, or 45 cents, a year earlier. The per- share result was in line with the average of analysts’ estimates compiled by Bloomberg.

Sales rose 13 percent to $68.8 million after the company added 44,000 subscribers. Pro forma results include the performance of the Sprint WiMax assets that Clearwire added last year.

Clearwire gained 45 cents, or 6.6 percent, to $7.25 in Nasdaq Stock Market trading at 4 p.m. New York time. The shares have risen 47 percent this year. Sprint, based in Overland Park, Kansas, fell 19 cents, or 5.5 percent, to $3.24 in New York Stock Exchange composite trading.

Google’s Absence

Google Inc. is the only one of Clearwire’s original investors not providing the additional funding. Google, Intel, Comcast, Time Warner Cable, Bright House and Sprint helped Clearwire raise $3.2 billion last year as the company reformed to focus on building out the high- speed wireless broadband network with WiMax technology.

Google said it has already made a significant investment and will instead focus on “product and strategic cooperation,” spokesman Andrew Pederson said yesterday.

Google wrote down $1.09 billion from its holdings in Clearwire and Time Warner Inc.’s AOL in the fourth quarter of last year. Intel wrote down $950 million of its Clearwire stake, while Time Warner Cable wrote down $367 million. Comcast had a $600 million writedown in that period.

Source:Bloomberg