Mobile Satellite Ventures (MSV) closed a $200 million private placement in its former subsidiary Terrestar Networks Inc., which was spun off to MSV’s shareholders as a stand-alone company.

Terrestar, in partnership with TMI Communications, is one of two companies licensed by the U.S. Federal Communications Commission to offer services in the 2 GHz frequency band and plans to develop, build and operate advanced mobile satellite services.

Following the closing, wireless communications provider Motient Corp. will become the majority shareholder of Terrestar with an ownership position of nearly 61 percent of outstanding shares.

“Construction of TerreStar’s satellite is well-underway with Space Systems/Loral,” Alexander Good, vice chairman and chief executive officer of MSV, said in a statement. “This financing enables TerreStar to continue its satellite and ground system development, while MSV dedicates the proceeds of its November financing to accelerate deployment of its next generation L-Band system. It is a win-win situation all around, not only for both companies, but also for the public interest through provision of innovative, cost- effective wireless services to consumers throughout North America.”