NextNav Announces $190 Million of 5% Redeemable Senior Secured, Convertible Transaction

Core Viewpoint - NextNav Inc. has announced a new investment of $190 million through the issuance of 5% redeemable senior secured convertible notes, aimed at strengthening its financial position and supporting growth objectives in the positioning, navigation, and timing (PNT) sector [2][3]. Company Overview - NextNav Inc. is a leader in next-generation PNT and 3D geolocation, providing solutions that rely on accurate and resilient positioning technologies [11]. - The company aims to enable a widescale terrestrial PNT solution, working with 5G infrastructure and device providers [3]. Investment Details - The new notes will mature on June 30, 2028, with approximately $70 million of the proceeds allocated to redeem existing 10% Senior Secured Notes due December 1, 2026 [2][6]. - The new notes have a conversion price of $12.56 per share, representing a 20% premium to the trailing 10-day closing price average prior to March 11, 2025 [5]. - The transaction is expected to close on or about March 31, 2025 [6]. Investor Participation - The investment is led by M-Cor Capital, LLC and Fortress Investment Group, with participation from other new and existing investors [2][3]. - M-Cor Capital and Fortress will receive warrants to purchase shares of NextNav common stock at various exercise prices [7]. Strategic Importance - The investment is positioned as a critical step in addressing the need for a backup system to the US GPS, enhancing the resilience of PNT solutions while supporting the US 5G ecosystem [3][4].