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MSV Closes $230 Million Financing To Make ATC A Reality |
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Nov. 22/Satnews Daily/ — Mobile Satellite Ventures (MSV) has announced that it has closed $230 million in equity financing, including $145 million in new funding and the conversion or exchange of $85 million of senior debt and accrued interest from its existing investors.
MSV said the private placement with existing stockholders involves substantial capital investment as well as the exchange of senior debt and accrued interest for equity. This new offering was done at a valuation that was a multiple of MSV's last round of financing.
In addition, holders of the company's convertible notes have converted all $58 million of principal resulting in a debt free MSV capital structure. This funding follows the FCC's grant on November 8 of the first ancillary terrestrial (ATC) license ever issued.
Alexander H. Good, MSV's vice chairman and CEO said the additional investment demonstrates the strong confidence of the company’s investors in the unique business opportunities presented by its technology and spectrum assets. "Combined with the FCC's decision, the financing provides the ability to expedite our plans to launch one of North America's leading wireless platforms," he said.
According to Eric Swank, MSV's chief financial officer, the transaction will support major initiatives in the key areas of satellite procurement, technology development on new and existing air interfaces, and the ability to make ATC a reality in North America.
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