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Harbinger to raise $400m for wireless venture
19 July 2010
A new satellite project, Harbinger Global Wireless, is seeking $400m in loans to set up a high-speed wireless network
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Harbinger
UBS
satellite
SkyTerra
Augere
Sanjiv Ahuja
Philip Falcone is looking for debt investors to invest in his high-speed wireless network project. Falcone’s Harbinger Capital Partners is targeting $400 million through a debt private placement. The proceeds will be used for costs associated with Harbinger Global Wireless.
The plan involves launching two satellites that would communicate with more than 30,000 wireless base stations across the US, and selling high-speed wireless access to US phone companies, cable operators and others.
Expenses include insurance for a satellite launch and development of wireless base stations.
Falcone has invested $2 billion of his and his clients’ money into the wireless plan. He is also offering some core wireless holdings as collateral to raise new debt.
The hedge fund manager is offering a $1.4 billion portion of Harbinger’s SkyTerra stake along with $1.2 billion in other assets, including holdings in other industries, for the $400 million loan being marketed by UBS bankers.
Harbinger also has a stake in Sanjiv Ahuja’s Augere project, which is building wireless broadband systems in emerging markets, and Ahuja’s name has been linked with the satellite venture. GTB