Latest news with #Ligado
Time of India
a day ago
- Business
- Time of India
AST SpaceMobile reaches deal to settle Ligado's Viasat dispute
NEW DELHI: AST SpaceMobile has reached a deal under which the bankrupt satellite operator Ligado Networks would pay more than $500 million it owes to Viasat , and in turn, will gain long-term access to the L-band spectrum to accelerate its planned direct-to-smartphone services in the US and Canada. As per a joint statement on Friday, AST SpaceMobile would provide about $550 million to Ligado, of which, $535 million would be paid to Viasat-owned Inmarsat , settling the mobile satellite services (MSS) operator's opposition to its bankruptcy restructuring plan. Ligado will make a $420 million lump sum payment to Inmarsat on October 31, 2025, and another $100 million on March 31, 2026, including the December and March quarterly payments. Inmarsat expects to receive a total of $568 million in FY26, which it will primarily utilise to manage near-term maturities and address its extended maturity profile. Starting on September 30, 2025, Ligado will resume making quarterly payments of nearly $16 million per quarter to Inmarsat. The quarterly payment amount will gradually increase by 3% per year through the contract, which will run until 2107. Texas-based AST SpaceMobile, which has secured commitments for a $550 million loan to support the deal, currently operates five commercial BlueBird satellites in low Earth orbit (LEO). To recall, shortly after filing for Chapter 11 bankruptcy protection, Ligado had sued Inmarsat on January 7 for allegedly breaching their 2007 L-band cooperation deal by not upgrading satellite terminals to avoid interference with the network. The lawsuit has now been stayed effective immediately, and will be dismissed under conditions outlined in the deal. 'We are pleased that our patient and disciplined approach to Ligado's bankruptcy paid off, resulting in a positive outcome for Viasat and our employees, customers, and shareholders,' said Mark Dankberg, chairman & CEO, Viasat. 'We saw the opportunity of a favorable outcome when completing the Inmarsat acquisition and not only anticipated the potential of utilising the cash proceeds from such an agreement to repay debt, which will soon further strengthen our capital position, but to also advance our growth strategy,' Dankberg added. As per the terms, as part of Ligado's ongoing restructuring, Inmarsat will support AST SpaceMobile receiving long-term spectrum usage rights for more than 80 years to up to 40 MHz of L-Band MSS spectrum in the United States and Canada held by Ligado, in addition to, access to an additional 5 MHz in the 1670-1675 MHz Band in the United States. Further, Inmarsat has agreed to provide its support of AST SpaceMobile's planned regulatory applications with the Federal Communications Commission (FCC) in the United States and ISED in Canada, seeking authority to operate an NGSO system within the L-Band mid-band spectrum in North America.
Business Wire
2 days ago
- Business
- Business Wire
AST SpaceMobile Announces Settlement Term Sheet Facilitating Long-Term Access to up to 45 MHz of Premium Lower Mid-Band Spectrum in North America for Direct-to-Device Satellite Applications
MIDLAND, Texas--(BUSINESS WIRE)--AST SpaceMobile, Inc. ('AST SpaceMobile') (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network accessible directly by everyday smartphones, designed for both commercial and government applications, today announced a Settlement Term Sheet among parties including AST SpaceMobile, Ligado Networks LLC ('Ligado'), Viasat, Inc. ('Viasat') and Inmarsat Global Limited ('Inmarsat') paving the way for approval of definitive documentation providing AST SpaceMobile long-term access to up to 45 MHz of premium lower mid-band spectrum in the United States and Canada for direct-to-device satellite applications. The Term Sheet, when approved, provides that as part of Ligado's ongoing restructuring, Inmarsat will support AST SpaceMobile receiving long-term spectrum usage rights for 80+ years to up to 40 MHz of L-Band MSS spectrum in the United States and Canada held by Ligado, plus access to an additional 5 MHz in the 1670-1675 MHz Band in the United States (the 'Transaction'). In addition, Inmarsat agrees to provide its affirmative support of AST SpaceMobile's planned regulatory applications with the Federal Communications Commission (FCC) in the United States and ISED in Canada seeking authority to operate a NGSO system within the L-Band mid-band spectrum in North America. The Term Sheet supplements the definitive documentation previously entered into between AST SpaceMobile and Ligado in March 2025 and remains subject to Court approval, expected before the end of June. When consummated, the Transaction will add additional capabilities to AST SpaceMobile's technology and space-based network, based on the largest-ever communications arrays deployed in low Earth orbit, pairing existing plans for the continental United States on low-band spectrum, which offers superior penetration and coverage characteristics, with access to up to 45 MHz of lower mid-band spectrum, the largest available block of high-quality nationwide spectrum in the United States. Upon approval of the Transaction, closing will be subject to receipt of satisfactory regulatory approvals required for the proposed use of the spectrum, and other closing conditions. At closing, Ligado will receive consideration of approximately $550 million, of which $535 million will be paid to Inmarsat. To support this consideration, AST SpaceMobile has received a $550 million institutional financing commitment, to finance a planned wholly owned special-purpose vehicle ('SPV') in the form of a non-recourse senior-secured delayed-draw term loan facility, subject to customary closing conditions. This non-recourse financing highlights the attractiveness and value of the spectrum beyond the significant synergistic benefits it provides AST SpaceMobile. Pursuant to the Term Sheet and in connection with Inmarsat's affirmative Transaction and regulatory support and the resolution of certain litigation matters between Ligado and Inmarsat, AST SpaceMobile agrees to certain payments ahead of closing, subject to certain conditions. So long the financial sponsors of Ligado provide an acceptable backstop commitment to AST SpaceMobile providing for a full refund of payments in the event regulatory approvals are not obtained and closing does not occur, AST SpaceMobile agrees to pay $420 million to Inmarsat on Ligado's behalf on October 31, 2025, $100 million to Inmarsat on Ligado's behalf on March 31, 2026 and $15 million to Inmarsat on Ligado's behalf upon receiving regulatory approval and closing of the Transaction. AST SpaceMobile plans to obtain institutional financing based on this backstop commitment to facilitate these obligations prior to the non-recourse senior-secured delayed-draw loan facility becoming effective upon regulatory approvals and closing. The term sheet for such backstop commitment has already been negotiated to AST SpaceMobile's satisfaction, providing committed financing from a highly credible group of lenders. AST SpaceMobile plans to supplement the existing financing commitment to cover the revised payment schedule. AST SpaceMobile's obligation to begin making spectrum access usage payments to Ligado will begin on September 30, 2025 per the Term Sheet. AST SpaceMobile currently operates its first five commercial BlueBird satellites into low Earth orbit, each the largest-ever commercial communications arrays deployed into low Earth orbit, reaching approximately 700 square feet in size. These initial satellites will offer non-continuous cellular broadband service across the United States and in select markets globally and will target approximately 100% nationwide coverage from space with over 5,600 coverage cells in the United States. The next-generation Block 2 BlueBirds featuring up to 2,400 square-foot communications arrays, are designed to deliver up to 10 times the bandwidth capacity of the BlueBird satellites in orbit, enabling peak data transmission speeds of up to 120 Mbps, supporting voice, full data, and video applications, and other native cellular capabilities. About AST SpaceMobile AST SpaceMobile is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on our extensive IP and patent portfolio, and designed for both commercial and government applications. Our engineers and space scientists are on a mission to eliminate the connectivity gaps faced by today's five billion mobile subscribers and finally bring broadband to the billions who remain unconnected. For more information, follow AST SpaceMobile on YouTube, X (Formerly Twitter), LinkedIn and Facebook. Watch this video for an overview of the SpaceMobile mission. Forward-Looking Statements This communication contains 'forward-looking statements' that are not historical facts, and involve risks and uncertainties that could cause actual results of AST SpaceMobile to differ materially from those expected and projected. These forward-looking statements can be identified by the use of forward-looking terminology, including the words 'believes,' 'estimates,' 'anticipates,' 'expects,' 'intends,' 'plans,' 'may,' 'will,' 'would,' 'potential,' 'projects,' 'predicts,' 'continue,' or 'should,' or, in each case, their negative or other variations or comparable terminology. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside AST SpaceMobile's control and are difficult to predict. Factors that could cause such differences include, but are not limited to: (i) expectations regarding AST SpaceMobile's strategies and future financial performance, including AST's future business plans or objectives, expected functionality of the SpaceMobile Service, anticipated timing of the launch of the Block 2 BlueBird satellites, anticipated demand and acceptance of mobile satellite services, prospective performance and commercial opportunities and competitors, the timing of obtaining regulatory approvals, ability to finance its research and development activities, commercial partnership acquisition and retention, products and services, pricing, marketing plans, operating expenses, market trends, revenues, liquidity, cash flows and uses of cash, capital expenditures, and AST SpaceMobile's ability to invest in growth initiatives; (ii) the negotiation of definitive agreements with mobile network operators relating to the SpaceMobile Service that would supersede preliminary agreements and memoranda of understanding and the ability to enter into commercial agreements with other parties or government entities; (iii) the ability of AST SpaceMobile to grow and manage growth profitably and retain its key employees and AST SpaceMobile's responses to actions of its competitors and its ability to effectively compete; (iv) changes in applicable laws or regulations; (v) the possibility that AST SpaceMobile may be adversely affected by other economic, business, and/or competitive factors; (vi) the outcome of any legal proceedings that may be instituted against AST SpaceMobile; and (vii) other risks and uncertainties indicated in the Company's filings with the Securities and Exchange Commission (SEC), including those in the Risk Factors section of AST SpaceMobile's Form 10-K filed with the SEC on March 3, 2025 and Form 10-Q filed with the SEC on May 12, 2025. AST SpaceMobile cautions that the foregoing list of factors is not exclusive. AST SpaceMobile cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors in AST SpaceMobile's Form 10-K filed with the SEC on March 3, 2025 and Form 10-Q filed with the SEC on May 12, 2025. AST SpaceMobile's securities filings can be accessed on the EDGAR section of the SEC's website at Except as expressly required by applicable securities law, AST SpaceMobile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. No assurance can be provided that the Transaction will be consummated or that the related financings will be disbursed. The Transaction and the disbursement of the related financings are subject to a number of conditions, including the entry into definitive documentation related to the financings and the satisfaction of the closing conditions to be specified in such definitive documentation. Even if the Transaction is consummated, the benefits of the Transaction will be subject to integration, technology and regulatory risks, as well as the risks to AST SpaceMobile referenced in the preceding paragraph. AST SpaceMobile intends to file publicly with the SEC, on Form 8-K within four business days following approval, a copy of the Settlement Term Sheet. The description of the Settlement Term Sheet contained in this press release is subject to the more complete description that will be available in such Form 8-K and the exhibit thereto. AST SpaceMobile cautions that the foregoing list of factors is not exclusive. AST SpaceMobile cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors in AST SpaceMobile's Form 10-K filed with the SEC on March 3, 2025, and Form 10-Q filed with the SEC on May 12, 2025. AST SpaceMobile's securities filings can be accessed on the EDGAR section of the SEC's website at Except as expressly required by applicable securities law, AST SpaceMobile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Yahoo
21-05-2025
- Business
- Yahoo
Viasat Inc (VSAT) Q4 2025 Earnings Call Highlights: Navigating Challenges with Strategic Innovations
Revenue: $1.15 billion for Q4 fiscal 2025; $4.5 billion for the full fiscal year 2025. GAAP Net Income: $246 million loss for Q4 fiscal 2025; $575 million loss for the full fiscal year 2025. Adjusted EBITDA: $375 million for Q4 fiscal 2025 with a 32.7% margin; $1.55 billion for the full fiscal year 2025 with a 34.2% margin. Free Cash Flow: Approximately $50 million for Q4 fiscal 2025. CapEx Reduction: Reduced combined fiscal 2025 and 2026 CapEx by close to $300 million. Commercial Aviation: 4,030 service aircraft, up 10%; backlog of 1,600, up 18%. Business Aviation: More than 2,000 service aircraft, up 12% year over year. Maritime Revenue: Down 8% as expected to trough in Q4 fiscal 2025. Government SATCOM Revenue: Growth of 16%. DAT Revenue: Up 11% for Q4 fiscal 2025 and 17% for the full fiscal year 2025. Operating Cash Flow: More than $900 million for fiscal year 2025, over 30% growth from fiscal 2024. Debt Management: Redeemed $443 million of '25 notes post-quarter end; plan to pay down $300 million of Inmarsat Term Loan B during fiscal 2026. Warning! GuruFocus has detected 7 Warning Signs with VSAT. Release Date: May 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Viasat Inc (NASDAQ:VSAT) achieved record new contract awards growth and met or beat its guidance metrics for fiscal 2025. The company successfully integrated the first ViaSat-3 F1 into its global network, enhancing user experience and network efficiency. Viasat Inc (NASDAQ:VSAT) introduced several network optimization innovations, delivering substantial efficiency and user experience gains. The company made significant progress on its capital structure, reducing capital intensity and enhancing financial transparency with new reporting segments. Viasat Inc (NASDAQ:VSAT) reported solid double-digit growth in operating cash flow and reduced capital expenditures by close to $300 million over fiscal 2025 and 2026. Viasat Inc (NASDAQ:VSAT) reported a GAAP net loss of $575 million for fiscal 2025. The company faced challenges in its US fixed broadband revenue due to capacity constraints, resulting in a 19% year-over-year decline in fixed services and other revenue. Viasat Inc (NASDAQ:VSAT) experienced slower deliveries and backlog in its Commercial Aviation business, impacting growth. The company anticipates modest revenue growth with flattish adjusted EBITDA for fiscal 2026, with potential headwinds from macroeconomic factors. Viasat Inc (NASDAQ:VSAT) is dealing with ongoing legal proceedings related to the Ligado bankruptcy, which could impact future cash payments and financial outlook. Q: Can you provide an update on the strategic review process for the Defense and Advanced Technologies segment? Is the process still ongoing, and what is the expected timing? A: Mark Dankberg, Chairman and CEO: The strategic review is still underway. The business is performing well, and we are assessing its value relative to future cash flows. We are also implementing enhancements to increase its value and competitiveness. We will update if there are any material changes in our approach. Q: What gives you confidence in the early 2026 launch for the ViaSat-3 F2 satellite, and how does this impact your EBITDA guidance? A: Mark Dankberg, Chairman and CEO: The corrective actions and testing for the F2 satellite are progressing well, and we plan to deliver it to the launch site this summer. The financial outlook remains unchanged despite potential schedule uncertainties. Garrett Chase, CFO, added that ground network costs were not a factor in the EBITDA guidance. Q: Can you provide a timeline and potential magnitude for the Ligado proceedings? A: Mark Dankberg, Chairman and CEO: The litigation is ongoing, and the public record indicates that we are owed over $500 million. The bankruptcy plan intends to consummate the transaction based on this amount. We cannot comment further on the timeline or magnitude at this point. Q: How do you see Viasat winning in the market over the next few years? A: Mark Dankberg, Chairman and CEO: Winning for us means growth, particularly in commercial aviation and maritime markets. We focus on delivering economic solutions with sufficient bandwidth to meet customer needs. Our strategy includes leveraging our satellite capacity and providing airlines with tools to manage connectivity and entertainment services. Q: What are the growth drivers for the Information Security, Cyber Defense, and Space & Mission Systems businesses in 2026? A: Mark Dankberg, Chairman and CEO: Growth in encryption is driven by the need for quantum-resistant solutions and refreshing mission-critical equipment. In Space & Mission Systems, we see opportunities in technology insertions, optical inter-satellite links, and national security applications. Our involvement in the European Space Agency's Moonlight program is also a growth driver. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
30-01-2025
- Business
- Reuters
Satellite company Ligado faces opposition over bankruptcy loan fees
Jan 30 (Reuters) - Satellite communications company Ligado Networks is trying to finance its bankruptcy with a high-fee loan that would eat up $100 million that could otherwise be used to repay creditors, according to an objection filed by fellow satellite company Inmarsat. Inmarsat said in a Wednesday court filing in Delaware that the company's existing lenders are only providing $115 million in new money to Ligado, while the rest of the bankruptcy loan merely refinances its existing debts. The loan adds nearly $100 million in new fees, almost entirely 'eating up' the new money and reducing the chance that Ligado's other creditors, including Inmarsat, will be paid, according to the objection. Ligado filed for bankruptcy protection earlier this month, seeking to eliminate $7.8 billion in debt and solidify a new spectrum-sharing partnership with satellite-to-phone company AST SpaceMobile. Ligado intends to fund its bankruptcy with a loan provided by the existing lenders, which include Fortress Investment Group and Cerberus Capital Management. Ligado and Inmarsat have recently sparred over the terms of a 99-year spectrum leasing agreement meant to coordinate the two companies' use of in-demand radio frequencies for mobile communications and other commercial uses. Inmarsat says that Ligado owes over $500 million under the spectrum sharing agreement, while Ligado sued Inmarsat for demanding payment while allegedly failing to hold up its end of the agreement. In Wednesday's objection, Inmarsat accused Ligado of selectively paying off some of its debts before bankruptcy to avoid the oversight that a court-appointed creditors committee would provide. The Department of Justice's bankruptcy watchdog, the Office of the U.S. Trustee, on Jan. 16 informed U.S. Bankruptcy Judge Thomas Horan, who is overseeing the bankruptcy, that no creditors' committee would be formed due to 'insufficient response' from Ligado's creditors. Ligado did not immediately respond to a request for comment. It has said in previous court filings that the bankruptcy loan was the best financing available at the time that it decided to file for Chapter 11 protection. Horan will consider approving Ligado's bankruptcy loan at a court hearing next week. Ligado has blamed its bankruptcy on the U.S. government's alleged interference with its planned expansion of its mobile 5G network services into a new spectrum that uses lower frequency radio waves. The company received a U.S. Federal Communications Commission permit to access the new spectrum in 2020, but the U.S. Department of Defense later blocked the planned expansion over concerns that Ligado's wireless signals could disrupt military global positioning system (GPS) receivers, it has said. Ligado sued the Defense Department and other U.S. agencies over its access to additional spectrum in 2023, saying that the government's actions deprived it of up to $39 billion in potential earnings from the FCC license. That lawsuit is proceeding in a federal court in Washington D.C. Ligado, formerly known as Lightsquared, previously filed for bankruptcy in 2012. In re: Ligado Networks LLC et al, U.S. Bankruptcy Court for the District of Delaware, No. 25-10006 For Ligado: Andrew Leblanc of Milbank For Inmarsat: Laura Davis Jones of Pachulski Stang Ziehl & Jones Read more: Ligado files for bankruptcy after stalled wireless expansion Satellite operator Ligado sues Inmarsat after bankruptcy filing Pentagon warns of GPS interference from Ligado broadband network
