TerreStar talks $450 million eight-year discount notes at 15% area

By Paul A. Harris

St. Louis, Feb. 6 - TerreStar Networks Inc., a majority-owned subsidiary of Motient Corp., has talked its $450 million offering of eight-year senior secured discount notes at the 15% area, according to market sources.

The non-rated deal is expected to price on Wednesday.

The notes will have a zero-percent coupon for the first four years, after which they will become cash-pay.

JP Morgan, Lehman Brothers and UBS Investment Bank are joint bookrunners for the notes, which will be marketed via Rule 144A with registration rights and via Regulation S.

The notes will come with four years of call protection.

Approximately $72 million of the proceeds will be used to repay debt owed to Motient with the remainder for working capital and general corporate purposes, including the buildout of TerreStar's integrated satellite and terrestrial network.

TerreStar is a developer, builder and operator of an internet protocol-based integrated satellite and terrestrial communications network and has corporate offices in Restson, Va., and Lincolnshire, Ill.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.