TerreStar scores $300M funding commitment: Expects satellite launch within a year

TerreStar Corp. said it received $300 million in investor commitments through the launch of its hybrid mobile satellite, with the transaction also giving the company access to additional frequencies to improve North American coverage.
The funding will be provided by EchoStar Corp., Harbinger Capital Partners Master Fund I Ltd. and Harbinger Capital Partners Special Situations Fund L.P. TerreStar is one of the mobile satellite service licensees authorized to supplement space-based facilities with an ancillary terrestrial component, essentially cellular networks like those operated by mobile phone carriers.
“These strategic investments will help drive long-term shareholder value and ensure that TerreStar has access to the requisite capital to achieve its operational launch by the end of 2008,” stated Robert Brumley, TerreStar CEO and president. “Also, the enhanced nationwide spectrum footprint can help TerreStar accomplish its mission to offer reliable, interoperable satellite-terrestrial communications and next-generation applications for the commercial, government, rural and public safety sectors throughout North America.”
Both the boards of directors of Reston, Va.-based TerreStar and its subsidiary, TerreStar Networks Inc., will expand to eight members, with EchoStar and Harbinger each having the right to nominate two members to each board, the company stated.
TerreStar said Arianespace, the launch provider for TerreStar-1, has confirmed it can launch the satellite during the December 2008 through February 2009 launch window.