Harbinger buys more shares of SkyTerra, settles warrant transaction as planned

By Lisa Kerner

Charlotte, N.C., Jan. 7 - SkyTerra Communications, Inc. investors led by Harbinger Capital Partners Master Fund I, Ltd. bought 83,996 shares of the company's stock on Dec. 20 and Jan. 7 priced at $5.65 or $5.98 per share.

Harbinger also bought warrants on Jan. 7 to purchase 9,144,038 additional shares, with the price per share to be determined at a later date, according to a schedule 13D filing with the Securities and Exchange Commission.

Harbinger Master Fund beneficially owns 10,751,658 shares, or 26.9%, of SkyTerra's outstanding stock.

It was previously reported that Harbinger and its affiliates were investors in a $150 million private placement of Mobile Satellite Ventures' senior unsecured notes and warrants for 7.5% of SkyTerra's common stock on a fully diluted basis.

The notes will mature on May 1, 2013 and bear interest at 16½% per year. Interest will be payable in cash or in kind until Dec. 15, 2011 and in cash after that.

The warrants have a strike price of $10.00 per share, and the settlement was expected on Jan. 4.

Sky Terra is the parent company of Mobile Satellite Ventures, a Reston, Va.-based satellite company.

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