SkyTerra, MSV score financing, hint at tie-up with Inmarsat

SkyTerra Communications Inc. and Mobile Satellite Ventures L.P. announced Harbinger Capital Partners Funds agreed to provide $500 million of debt financing to fund the former’s business plan through the third quarter of 2010.
In addition, SkyTerra and MSV said they entered into an accord with affiliates of Harbinger regarding the possible combination of SkyTerra and Inmarsat plc, a U.K. publicly listed company and a leading provider of global mobile satellite communications services. However, they noted Inmarsat is not a party to the master agreement.
“We are not against an offer from SkyTerra/Harbinger and we are not against them trying to pre-clear regulatory hurdles,” said Christopher McLaughlin, an Inmarsat spokesman. “We are very confident in our prospects as an independent company. We will monitor the regulatory process to ensure that it doesn’t affect our business as an independent company. We will look at an offer if one mergers.”
“Obtaining this financing is a significant milestone for SkyTerra and MSV,” said SkyTerra CEO Alexander Good. “We have obtained committed financing for our period of greatest financial need – through the launch of our MSV-1 satellite to the time we expect to launch MSV-2. We now look forward to bringing to market the advanced services we believe will set a high-water mark for the MSS/ATC [mobile satellite service/ancillary terrestrial component] industry, and extend the marketplace for satellite services far beyond their historical bounds. This revolutionary satellite system is expected to provide service for at least 15 years and will ring in the era of integrated satellite-terrestrial networks.”
SkyTerra is the parent company of MSV, which along with the latter’s Canadian joint venture partner, Mobile Satellite Ventures Canada Inc., delivers mobile wireless voice and data services primarily for public safety, security, fleet management and asset tracking in the United States and Canada. MSV and MSV Canada are developing an integrated satellite-terrestrial communications network, which they expect will provide seamless, transparent and ubiquitous wireless coverage of the U.S. and Canada to consumer handsets.