Iridium Communications Inc. Announces Proposed Private Offering
09 March 2018 - 11:10PM
Iridium Communications Inc. (Nasdaq:IRDM) (the “Company”) today
announced the commencement of a private offering of $360 million in
aggregate principal amount of senior notes due 2023 (the “Notes”).
The Company plans to use the net proceeds of the offering to (i)
make approximately $59.9 million of deferred payment obligations by
repaying all amounts outstanding under the Company’s bills of
exchange with Thales Alenia Space France (“Thales”), including
interest and insurance, (ii) make approximately $44.4 million of
milestone payments to Thales under the Full Scale System
Development Contract No. ID-10-021 between Iridium Satellite LLC
and Thales when the applicable milestones have been met and (iii)
fund approximately $87.0 million into the debt service reserve
account under the Company’s existing $1.8 billion credit facility
(the “Credit Facility”). Any remaining proceeds will be used for
general corporate purposes, including fees and expenses relating to
the amendment to the Credit Facility that will become effective
upon the issuance of the Notes.
The Notes proposed to be offered will not be registered under
the Securities Act of 1933, as amended (the “Securities Act”), or
any state securities laws and may not be offered or sold in the
United States or to any U.S. persons absent registration under the
Securities Act, or pursuant to an applicable exemption from, or in
a transaction not subject to, the registration requirements of the
Securities Act and applicable state securities laws. The Notes will
be offered only to persons reasonably believed to be “qualified
institutional buyers” under Rule 144A of the Securities Act or,
outside the United States, to persons other than “U.S. persons” in
compliance with Regulation S under the Securities Act.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy the Notes, nor shall there be any
offer, solicitation or sale of any Notes in any jurisdiction in
which such offer, solicitation or sale would be unlawful. The
Company gives no assurance that the proposed offering can be
completed on any terms.
About Iridium Communications Inc.
Iridium is the only mobile voice and data satellite
communications network that spans the entire globe. Iridium enables
connections between people, organizations and assets to and from
anywhere, in real time. Together with its ecosystem of partner
companies, Iridium delivers an innovative and rich portfolio of
reliable solutions for markets that require truly global
communications. The company has a major development program
underway for its next-generation network — Iridium NEXT. Iridium
Communications Inc. is headquartered in McLean, Va., U.S.A., and
its common stock trades on the NASDAQ Global Select Market under
the ticker symbol IRDM. For more information about Iridium
products, services and partner solutions, visit
www.iridium.com.
Forward-Looking Statements
Statements in this press release that are not purely historical
facts may constitute forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements include statements regarding Iridium’s expectations with
respect to the consummation of the offering of its Notes and the
effectiveness of its agreement with its credit facility lenders to
solidify its liquidity position and the use of proceeds of the
Notes. Forward-looking statements can be identified by the words
“anticipates,” “may,” “can,” “believes,” “expects,” “projects,”
“intends,” “likely,” “will,” “to be” and other expressions that are
predictions or indicate future events, trends or prospects. These
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of Iridium to differ materially from
any future results, performance or achievements expressed or
implied by such forward-looking statements. These risks and
uncertainties include, but are not limited to, uncertainties
regarding demand for the Notes, as well as general industry and
economic conditions, and competitive, legal, governmental and
technological factors. Other factors that could cause actual
results to differ materially from those indicated by the
forward-looking statements include those factors listed under the
caption “Risk Factors” in the Company’s Form 10-K for the year
ended December 31, 2017, filed with the Securities and Exchange
Commission (“SEC”) on February 22, 2018, as well as other filings
Iridium makes with the SEC from time to time. There is no assurance
that Iridium’s expectations will be realized. If one or more of
these risks or uncertainties materialize, or if Iridium’s
underlying assumptions prove incorrect, actual results may vary
materially from those expected, estimated or projected. Iridium’s
forward-looking statements are based on information available to it
as of the date of this press release and speak only as of the date
of this press release, and Iridium undertakes no obligation to
update forward-looking statements.
Investor
Contact |
|
Press
Contact |
KENNETH B. LEVY |
|
JORDAN HASSIN |
Iridium Communications
Inc. |
|
Iridium Communications
Inc. |
(703)
287-7570ken.levy@iridium.com |
|
(703)
287-7421jordan.hassin@iridium.com |
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