SkyTerra of Reston, Va., owns Mobile Satellite Ventures, a company holding the first license granted by the U.S. Federal Communications Commission to build a hybrid terrestrial and satellite network. Skyterra also holds an 11% stake in satellite services company TerreStar Networks Inc.

In exchange for the funding, Harbinger will provide receive notes due in 2013 and warrants to purchase 7.5% of SkyTerra's stock at an exercise price of $10 per share. As of late afternoon, SkyTerra shares traded at $5.75, up 11.7%.

Harbinger already owns a 6% stake in SkyTerra. Scott Macleod, chief financial officer of SkyTerra, said the move funds the company through the end of 2008.

The satellite company, which reported a loss of $57.1 million in 2006 on sales of $34.9 million, has a contract with Boeing Satellite Systems Inc. worth about $500 million to build and launch two satellites. It plans to launch one in late 2009 and the other in mid-2010. Initially the satellites will provide enhanced communications, such as the ability to contact multiple public safety officials during an emergency.

SkyTerra hopes to eventually build a satellite and terrestrial network able to provide fourth-generation voice and data coverage over North America, which would put the company in competition with major wireless carriers.

Harbinger has made several investments in the satellite field and has also amassed more than a 40% stake in TerreStar Corp., which owns 39% of SkyTerra. TerreStar also owns most of TerreStar Networks, which is building a satellite offering using a different band of spectrum than Mobile Satellite Ventures.

Harbinger, a subsidiary of Birmingham, Ala., investment firm Harbert Management Corp., did not return calls seeking comment.