By Lisa Kerner
Charlotte, N.C., July 1 - SkyTerra Communications Inc. sold another $75 million in notes to affiliates of Harbinger Capital Partners on Wednesday, according to an 8-K filed with the Securities and Exchange Commission.
The original agreement, announced July 25, 2008, provided that Harbinger would invest up to $500 million in four tranches of debt financing to fund SkyTerra's operations through the third quarter of 2010. The first of the four tranches closed on Jan. 7, and the second closed on April 1.
The 18% senior notes mature in 2013.
Harbinger will also receive warrants to purchase 32.5 million shares of common stock. Of the total, warrants for 21.25 million of SkyTerra's shares were issued in this tranche. SkyTerra will issue warrants for 3.75 million shares of common stock at the fourth closing, expected to be Jan. 4, 2010.
The warrants are exercisable at $0.01.
SkyTerra is a Reston, Va.-based provider of mobile wireless voice and data services primarily for public safety, security, fleet management and asset tracking in the United States and Canada.
| Issuer: | SkyTerra Communications Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | 2013
|
| Coupon: | 18%
|
| Price: | Par
|
| Yield: | 18%
|
| Warrants: | For 32.5 million shares
|
| Warrant strike price: | $0.01
|
| Investors: | Harbinger Capital Partners and affiliates
|
| Settlement date: | Jan. 7 (for $150 million), April 1 (for $175 million), July 1 (for $75 million)
|
| Distribution: | Private placement
|
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