RESTON, Va., Nov. 17, 2004 (PRIMEZONE) -- Mobile Satellite Ventures (MSV) announced today 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. This 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 8th of the first ancillary terrestrial (ATC) license ever issued, marking a new chapter in mobile communications.
"This additional investment demonstrates the strong confidence of our existing investors in the unique business opportunities presented by our groundbreaking technology and spectrum assets," said Alexander H. Good, MSV's vice chairman and CEO. "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."
According to Eric Swank, MSV's chief financial officer, "This 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."
About Mobile Satellite Ventures
Mobile Satellite Ventures is North America's premier provider of mobile satellite communications. Delivering service since 1996, MSV offers customers a wide choice of wireless data, voice, fax and dispatch radio services via its two MSAT satellites. MSV provides superior capacity and reliability for customers across North America, northern South America, Central America, the Caribbean, Hawaii and in coastal waters.
MSV is dedicated to developing the next generation hybrid wireless network over North America that will utilize a powerful satellite constellation working in unison with MSV's patented ancillary terrestrial component (ATC) technology to deliver seamless wireless services to end-users over standard wireless devices.
The MSV investor group includes Telecom Ventures, Columbia Capital, Spectrum Equity, SkyTerra Communications (SKYT), Motient (MNCP), and TMI Communications.
MSV is headquartered in Reston VA with an office in Ottawa, ON. For more information, visit MSV online at www.msvlp.com.