NextNav Inc. today announced it has entered into a purchase agreement for the sale of $190 million of 5% redeemable senior secured convertible notes due 2028. This transaction was led by M-Cor Capital, LLC and funds managed by affiliates of Fortress Investment Group, along with other new and existing investors.
Approximately $70 million of the proceeds from this issuance will be used to redeem NextNav’s existing 10% Senior Secured Notes due December 1, 2026, and pay accrued interest. This move is expected to strengthen NextNav's financial position, enabling investment in its technology, pursuit of growth objectives, and creation of long-term stockholder value.
The new notes will have a conversion price of $12.56 per share, based on a 20% premium to the trailing 10-day closing price average prior to March 11, 2025. M-Cor and Fortress will also receive warrants to purchase 1.5 million shares at $20 per share, 950 thousand shares at $17 per share, and 1.45 million shares at $12.56 per share. The transaction is expected to close on or about March 31, 2025.
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