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

Rhea-AI Summary

NextNav (NASDAQ: NN), a leader in next-generation positioning, navigation, and timing (PNT) and 3D geolocation, has successfully closed a $190 million private placement of 5% redeemable senior secured convertible notes due 2028. The company received net proceeds of approximately $188.6 million after deducting fees and expenses.

The company plans to use part of these proceeds to redeem its existing $70 million aggregate principal amount of 10% Senior Secured Notes due 2026. The redemption will be executed at 101% of the principal amount plus any accrued and unpaid interest.

Positive

• Secured $188.6 million in net proceeds from convertible notes offering
• Reduced interest rate from 10% to 5% on debt refinancing
• Extended debt maturity from 2026 to 2028

Negative

• Increased total debt burden by $120 million
• Potential future dilution for shareholders due to convertible nature of new notes

RESTON, Va., March 27, 2025 (GLOBE NEWSWIRE) -- NextNav Inc. (the "Company" or “NextNav”) [NASDAQ: NN], a leader in next-generation positioning, navigation, and timing (“PNT”) and 3D geolocation, today announced the successful closing of the previously announced private placement of $190 million of 5% redeemable senior secured convertible notes due 2028 (“the Private Placement”). The net proceeds from the Private Placement were approximately $188.6 million after deducting certain fees and expenses (the “Net Proceeds”).

The Company intends to use a portion of the Net Proceeds to redeem its $70 million aggregate principal amount of 10% Senior Secured Notes due 2026 (the “Existing Notes”). The Existing Notes will be redeemed in full at 101% of the principal amount plus any accrued and unpaid interest.

About NextNav

NextNav Inc. (Nasdaq: NN) is a leader in next-generation positioning, navigation and timing (PNT), enabling a whole new ecosystem of applications and services that rely upon 3D geolocation and PNT technology. Powered by low-band licensed spectrum, NextNav’s positioning and timing technologies deliver accurate, reliable, and resilient 3D PNT solutions for critical infrastructure, GPS resiliency and commercial use cases.

For more information, please visit https://nextnav.com/ or follow NextNav on X at https://x.com/NextNav or LinkedIn at https://www.linkedin.com/company/nextnav/.

Forward-Looking Statements

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including without limitation, statements about the redemption of the Existing Notes. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks include, but are not limited to, those related to the Company’s ability to complete the transactions on the proposed terms or on the anticipated timeline, or at all. These forward-looking statements speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Readers are directed to the Company’s periodic and other reports filed with the Securities and Exchange Commission (the “SEC”) for a description of such risks and uncertainties. The Company undertakes no obligation to update any forward-looking statements. In evaluating those statements, you should specifically consider various factors, including the risks and uncertainties discussed in the Company’s Annual and Quarterly Reports on Forms 10-K and 10-Q and in other reports the Company files with the SEC. Actual events or the Company’s actual results may differ materially from the forward-looking statements.

Source: NN-FIN

Investor Contact:
IR@nextnav.com

Media Contact:
NNmedia@nextnav.com

FAQ

What is the size and interest rate of NextNav's (NN) new convertible notes offering?

NextNav's new convertible notes offering is $190 million with a 5% interest rate, due in 2028.

How much net proceeds did NextNav (NN) receive from the March 2025 private placement?

NextNav received approximately $188.6 million in net proceeds after deducting fees and expenses.

How will NextNav (NN) use the proceeds from its 2025 convertible notes offering?

NextNav will use part of the proceeds to redeem $70 million of existing 10% Senior Secured Notes due 2026.

What is the redemption price for NextNav's (NN) existing 2026 notes?

The existing notes will be redeemed at 101% of principal amount plus accrued and unpaid interest.