NextNav Secures $190 Million in Financial Transaction

By Tamara Parker • Thursday, March 13 15:20 • Permanent Link

NextNav Inc. has announced a significant financial transaction, with the sale of $190 million in 5% redeemable senior secured convertible notes. The company plans to use approximately $70 million of the proceeds to redeem existing 10% senior secured notes due in 2026.

The transaction was led by M-Cor Capital, LLC and Fortress Investment Group, with other new and existing investors also participating. This move is aimed at bolstering NextNav's financial position and enabling further investment in technology, growth objectives, and long-term stockholder value.

The new notes will mature on June 30, 2028, with a conversion price of $12.56 per share, representing a 20% premium to the 10-day closing price average prior to March 11, 2025. Additionally, at closing, M-Cor and Fortress will receive warrants to purchase shares of NextNav common stock at various exercise prices.

The company has also announced plans to redeem the existing 10% notes, provided the transaction closes as expected by March 31, 2025.

Fortress Investment Group, with $49.0 billion of assets under management, is a key player in this transaction. NextNav Inc. itself, is a leader in next-generation positioning, navigation, and timing (PNT) technology, offering 3D geolocation and PNT solutions for critical infrastructure, GPS resiliency, and commercial use cases.

The company's CEO, Mariam Sorond, views this transaction as a means to further the company's mission to enable a widescale terrestrial PNT solution working with standards-based 5G infrastructure and device providers.

Josh Lobel, CEO of M-Cor Capital, emphasized the need for widescale terrestrial PNT solutions and the potential of NextNav's vision and technology to deliver such solutions rapidly and cost-effectively.

Drew McKnight, Co-Chief Executive Officer and Managing Partner at Fortress, expressed excitement about investing alongside M-Cor in NextNav's efforts to address critical infrastructure issues and improve the US 5G ecosystem.

This latest development underscores NextNav's commitment to advancing its technological capabilities and expanding its market presence, with the backing of prominent investors. As a result of these announcements, the company's shares have moved 10.5% on the market, and are now trading at a price of $11.35. For the full picture, make sure to review NextNav's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.