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Clearwire to Redeem Bonds

As part of its refinancing, wireless high-speed internet provider Clearwire says it will redeem $620.7m in outstanding bonds. 

The company will use funds from its new $1billion loan to take out the bonds which are due to mature in 2010 and carry an interest rate of 11%. The company will actually redeem the bonds on August 15 when it receives the balance of its loan financing that it didn’t get initially.

 Earlier today the company said it lined up a $1 billion five-year loan of which it received $379.3m up front. Proceeds from the initial draw were used to repay existing debt, a $125m credit facility, and the company plans to use the balance to invest in its operations.

 Last month the company announced distribution agreements with DirecTV and Echostar to provide broadband services to the DBS provider’s bundled services.