By Angela McDaniels
Seattle, Nov. 30 - Motient Corp. sold $200 million of first-priority senior secured notes due Nov. 30, 2007 in a private placement on Tuesday, according to an 8-K report filed with the Securities and Exchange Commission.
The initial coupon is 12%. Beginning on April 28, the coupon will increase monthly up to a maximum of 27 1/8%.
The notes are callable at 101% of par beginning Jan. 28. The redemption amount steps up to 101.5% on May 28, 2007, to 101.75% on June 28, 2007, to 102% of par on July 28, 2007, to 102.5% of par on Aug. 28, 2007, to 103% of par on Sept. 28, 2007 and to 103.5% on Oct. 28, 2007.
The notes are guaranteed by the company and its subsidiaries, including TerreStar Networks Inc., Motient License Inc., MVH Holdings Inc., Motient Services Inc., Motient Communications Inc., Motient Ventures Holding Inc. and Motient Holdings Inc.
In connection with the issuance of the notes, Motient entered into the security agreement, under which the company and its subsidiaries granted a security interest in some of their assets in order to secure the payment of principal and interest on the notes.
The company plans to deposit $13.1 million of the $194 million net proceeds into a cash escrow account and to use to remainder to fund TerreStar's business plan and for general corporate purposes.
U.S. Bank NA is trustee for the notes.
Motient is a wireless data provider based in Lincolnshire, Ill.
| Issuer: | Motient Corp.
|
| Issue: | First-priority senior secured notes
|
| Amount: | $200 million
|
| Maturity: | Nov. 30, 2007
|
| Coupon: | 12% with monthly step-up beginning April 28
|
| Price: | Par
|
| Callable: | Beginning Jan. 28 at 101% with increasing redemption premiums
|
| Settlement date: | Nov. 30
|
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