SkyTerra Acquires Equity Stake In MSV Joint Venture
New York-based SkyTerra Communications [SKYT] acquired a 22-percent equity stake in MSV Joint Venture by converting $51 million in notes, originally purchased in the venture during November 2001, into partnership units.
The $6.45-per-share conversion price occurred in connection with a successful $230 million financing by MSV in which it raised $145 million in cash by selling partnership units for $29.45 per unit and converting approximately $85 million of debt securities. MSV Joint Venture, a provider of mobile digital voice and data communications services in North America, last week received approval from the Federal Communications Commission (FCC) to operate the first terrestrial wireless infrastructure in support of a satellite voice and data network. That ancillary terrestrial component will enable MSV to offer affordable mobile services in urban areas, as well as to provide mobile satellite services in rural areas, according to the FCC.