Business
NextNav Inc. Closes $50 Million Debt Financing
Facility Includes Potential Expansion of Notes up to $80 million Provides Multiple Years of Funding to Enhance Asset Platform MCLEAN, Va., May 10, 2023
About this update from Nextnav Inc.
[{"type":"text","content":"Facility Includes Potential Expansion of Notes up to $80 million\nProvides Multiple Years of Funding to Enhance Asset Platform\nMCLEAN, Va., May 10, 2023 /PRNewswire/ -- NextNav Inc. (Nasdaq: NN), a leader in next generation GPS, today announced the closing of a private offering (the \"Offering\") of $50 million aggregate principal amount of 10.00% Senior Secured First Lien Notes (the \"Notes\") due December 2026 to a group of lenders (the \"Lenders\"), including Whitebox Advisors LLC, Susquehanna International Group, and Clutterbuck Capital Management, on May 9, 2023. The Lenders will also have the exclusive option to purchase an 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.\n\n \n \n \n \n \n \n\n \n\"Our ability to secure multiple years of financing with modest equity dilution is a testament to the value of our asset base and resilient PNT capabilities,\" said Ganesh Pattabiraman, NextNav Co-founder and CEO. \"We are very pleased to have a strong syndicate of blue-chip lenders who are aligned with our vision for NextNav. This new funding provides significant runway to actualize our strategic priorities, and efficiently maximize the full value of our asset-rich platform for shareholders and customers.\"\nThe Notes will mature on December 1, 2026, and pay interest semi-annually at a rate of 10.0% per annum, with the first payment being due on December 1, 2023. 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 approximately 12.5% ownership on a fully diluted basis. The Warrants are partially callable beginning in 2025 depending on the prevailing stock price.\nB. Riley Securities acted as the exclusive financial advisor to NextNav on the financing. NextNav was represented by Hogan Lovells; Calfee, Halter & Griswold represented the Lenders.\nThi...