TerreStar Corp. has hired a financial adviser to explore strategic alternatives for the 5G airwaves within its medical division, Bloomberg News reported. The company, majority-owned by Solus Alternative Asset Management, is weighing options to monetize the spectrum, either by refinancing debt or going public through a merger with a special purpose acquisition company. It could also seek investment from a private equity firm or a large telecommunications company. TerreStar got permission from the U.S. Federal Communications Commission last year to use its wireless airwaves in medical facilities, and potentially to deploy that spectrum in other industries if it meets certain conditions. This increased the value of the licenses, which could now fetch more than $1 billion. The midband frequencies, including those licensed by TerreStar, are prized for their combined ability to travel far and carry lots of data. They are expected to drive years of growth when deployed for next-generation mobile devices, autonomous vehicles, health-care equipment and manufacturing facilities. TerreStar was founded in 2013, born from a restructuring of the original company, which was a mobile satellite network operator. One of its units, TerreStar Networks Inc., was sold to Dish Network Corp. for $1.38 billion. The chapter 11 restructuring eventually handed ownership of TerreStar to investors including Solus and Highland Capital Management.
