TerreStar Networks Completes $500 Million Financing.Motient Corporation Redeems $200 Million Notes RESTON, Va. & LINCOLNSHIRE, Ill. -- TerreStar Networks TerreStar Networks is a Reston, VA-based company that operates integrated satellite and terrestrial telecommunications systems. It is a subsidiary of TerreStar Corporation. Inc. ("TerreStar"), a majority-owned subsidiary majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. of Motient Corporation ("Motient") (MNCP), today announced it has closed on the sale of $500 million in aggregate principal amount of its 15% Senior Secured PIK PIK See: Payment-in-kind bond PIK See payment-in-kind security (PIK). Notes due 2014 (the "Notes"). The sale was made in reliance upon certain exemptions from registration under the Securities Act. TerreStar plans to use $72.0 million of its net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the sale of the Notes to repay certain indebtedness to its parent Motient, and the remainder for working capital and general corporate purposes, including the buildout of its integrated satellite and terrestrial network. Motient Corporation announced today that it has redeemed $200 Million of its Senior Secured Notes due 2007. About Motient Corporation Motient is the controlling shareholder of TerreStar Networks Inc., and a shareholder of SkyTerra Communications and Mobile Satellite Ventures Mobile Satellite Ventures (MSV) is a Reston, VA company that develops telecommunications systems that integrate satellite and terrestrial radio communication technologies into one system. LP. For additional information on Motient, please visit the company's website at www.motient.com. About TerreStar Networks Inc. TerreStar (www.terrestar.com), a subsidiary of Motient Corporation, plans to build, own and operate North America's first 4G integrated mobile satellite and terrestrial communications network The transmission channels interconnecting all client and server stations as well as all supporting hardware and software. that will provide universal access and tailored applications throughout North America over conventional wireless devices. TerreStar expects to be the first to offer customer-designed products and applications over a fully optimized 4G IP network. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to the strategy of Motient, its plans, and the transactions described in this press release. Such statements generally include words such as could, can, anticipate, believe, expect, seek, pursue, proposed, potential and similar words and terms in connection with future results. We assume no obligation to update or supplement such forward-looking statements. |
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