Sprint - Nextel 2008 Annual Report Download - page 124

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CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
In the Private Placement, the Participating Equityholders agreed to invest in Clearwire Communications a
total of $1.564 billion in exchange for Clearwire Communications Class B Common Interests and Clearwire
Communications Voting Interests in the following amounts (in millions, except for Interests):
Investor Investment Interests
Sprint ...................................................... $1,176.0 160,436,562
Comcast .................................................... 196.0 26,739,427
Time Warner Cable ........................................... 103.0 14,051,841
Bright House ................................................ 19.0 2,592,087
Intel ....................................................... 50.0 6,821,282
Eagle River .................................................. 20.0 2,728,512
$1,564.0 213,369,711
Immediately following the receipt by the Participating Equityholders of Clearwire Communications Class B
Common Interests and Clearwire Communications Voting Interests, each of the Participating Equityholders
agreed to contribute to Clearwire its Clearwire Communications Voting Interests in exchange for an equal
number of shares of Clearwire’s Class B common stock, par value $0.0001 per share, which we refer to as
Class B Common Stock.
Under the Investment Agreement, in exchange for the purchase by Sprint, Comcast, Time Warner Cable and
Bright House of Clearwire Communications Class B Common Interests and Clearwire Communications Voting
Interests in amounts exceeding certain amounts stipulated in the Investment Agreement, Clearwire
Communications agreed to pay a fee, which we refer to as an Over Allotment Fee, equal to the following
amounts. Such fee is payable in cash, or Clearwire Communications Class B Common Interests and Clearwire
Communications Voting Interests, at the option of the Participating Equityholder:
Investor Over Allotment Fee
Sprint ............................................................. $18,878,934
Comcast ........................................................... $ 3,135,911
Time Warner Cable .................................................. $ 1,659,287
Bright House ....................................................... $ 315,325
At the Second Investment Closing, Clearwire Communications delivered a portion of the Over Allotment
Fee, $6.9 million in cash and $9.5 million in Clearwire Communications Class B Common Interests, valued at
$7.33 per interest, and an equal number of Clearwire Communications Voting Interests to Sprint, $2.7 million in
cash to Comcast, $1.4 million in cash to Time Warner Cable and $275,000 in cash to Bright House. The
remaining Over Allotment Fee of $3.2 million will be paid in cash or Clearwire Communications Class B
Common Interests and Clearwire Communications Voting Interests at the Third Investment Closing.
Immediately after the Third Investment Closing, Sprint will own 71.5% of the Class B Common Stock,
Comcast will own 11.9% of the Class B Common Stock, Time Warner Cable will own 6.2% of the Class B
Common Stock, Bright House will own 1.1% of the Class B Common Stock, Intel will own 8.9% of the Class B
Common Stock and Eagle River will own 0.4% of the Class B Common Stock. These percentages include
1,287,785 of Clearwire Communications Class B Common Interests and Clearwire Communications Voting
Interests to be issued to Sprint, as Sprint has agreed to accept half of its Over Allotment Fee in Clearwire
Communications Class B Common Interests.
Clearwire holds all of the outstanding Clearwire Communications non-voting Class A equity interests,
which we refer to as Clearwire Communications Class A Common Interests, and all the outstanding Clearwire
Communications Voting Interests, representing 21.1% of the economics and 100% of the voting rights of
Clearwire Communications as of December 31, 2009.
F-58