By Wendy Van Sickle
Columbus, Ohio, July 10 – NextNav Inc. sold an additional $20 million 10% senior secured first-lien notes due Dec. 1, 2026 in a private offering on July 6, according to an 8-K filing with the Securities and Exchange Commission.
The notes are in addition to the $50 million principal amount of 10% first-lien notes due 2026 announced on May 9.
The lenders had the option to purchase the additional $20 million of notes on the same terms for 30 days following the close. The facility provides the ability to issue up to a maximum $80 million aggregate principal amount of notes.
A minimum of 50% of each interest payment due on the notes must be paid in cash, with the rest payable in cash or stock at the company’s discretion.
The notes are guaranteed on a first-lien senior secured basis by NextNav’s domestic subsidiaries and secured by substantially all of the assets of the company and its domestic subsidiaries. In addition, the noteholders will receive fair market value warrants to purchase common stock for cash at an aggregate exercise price of $40 million and represent about 12.5% ownership on a fully diluted basis. The warrants are partially callable beginning in 2025 depending on the prevailing stock price.
The next generation GPS company is based in McLean, Va.
| Issuer: | NextNav Inc.
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| Amount: | $20 million add-on
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| Issue: | Senior secured first-lien notes
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| Maturity: | Dec. 1, 2026
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| Coupon: | 10%, at least 50% must be paid in cash, rest may be cash or stock at company discretion
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| Settlement date: | July 6
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| Distribution: | Private placement
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| Previous issuance: | $50 million announced in May
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