SkyTerra Acquires Equity Stake in MSV Joint Venture

NEW YORK, Nov. 16/Satnews Daily/ ¾ SkyTerra Communications, Inc. (OTCBB:SKYT) has acquired a 22% equity stake in the MSV Joint Venture.

MSV Joint Venture is a provider of mobile digital voice and data communications services in North America. Last week, MSV received approval from the Federal Communications Commission to operate the first ever terrestrial wireless infrastructure in support of a satellite voice and data network (called an ancillary terrestrial component or ATC). The ATC approval enables MSV to offer high-quality, affordable mobile services in urban areas, in addition to providing mobile satellite services in rural areas. 

SkyTerra said the conversion occurred in connection with a successful $230 million financing by MSV in which it raised $145 million in cash by selling partnership units for $29.45 per unit and exchanged or converted approximately $85 million of debt securities.

As a result of these transactions, SkyTerra's 80% owned subsidiary, which holds its stake in the MSV Joint Venture, also received approximately $17 million in cash from MSV to pay the accrued interest on the convertible notes, further increasing SkyTerra's cash balance.

SkyTerra said the significant proceeds from this transaction will allow the MSV Joint Venture to aggressively continue the development and testing of its next-generation wireless communications network.