Iridium Communications Inc. Prices Offering of Senior Unsecured Notes
17 March 2018 - 3:43AM
Iridium Communications Inc. (Nasdaq:IRDM) (the “Company”) today
announced that it has priced $360 million in aggregate principal
amount of its senior unsecured notes due 2023 (the “Notes”). The
Notes will bear interest at 10.250% per annum and will mature on
April 15, 2023. Interest will be payable semi-annually on April 15
and October 15 of each year, beginning on October 15, 2018. The
closing of the offering of the Notes is expected to occur, subject
to certain customary conditions, on March 21, 2018.
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
Iridium Satellite LLC’s bills of exchange issued to 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 and Thales when the applicable milestones
have been met and (iii) fund approximately $87.0 million into the
debt service reserve account under Iridium Satellite’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 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 and sold 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.
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Investor
Contact |
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Press
Contact |
KENNETH B. LEVY |
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JORDAN HASSIN |
Iridium Communications
Inc. |
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Iridium Communications
Inc. |
(703) 287-7570 |
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(703) 287-7421 |
ken.levy@iridium.com |
jordan.hassin@iridium.com |
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