Iridium Announces Closing of $1.45 Billion Refinancing

MCLEAN, Va., Nov. 4, 2019 (Iridium PR) — Iridium Communications Inc. (Nasdaq: IRDM) today announced the closing of a $1.45 billion, seven-year term loan that sets the stage for the company to complete its financial transformation. The new credit agreement formally retires Iridium’s previous credit facility initiated in 2010 and guaranteed by BPI France (formerly COFACE), which enabled Iridium to finance the Iridium® NEXT program.  An additional $100 million, five-year revolving loan facility is also included in the new agreement.

The new term-loan offering was significantly oversubscribed and, as a result, achieved favorable terms, including an interest rate of LIBOR plus 3.75% with a 0.5% original issue discount. The success of the offering highlighted the company’s position as a unique investment opportunity, showing its rare combination of growth and levered free cash flow generation.  The term loan provides Iridium added financial flexibility to consider shareholder-friendly activities, including share buybacks, dividends and opportunistic strategic investments, coincident with anticipated reductions in net leverage. 

“This transaction simplifies Iridium’s capital structure and adds financial flexibility to benefit our shareholders,” said Tom Fitzpatrick, chief financial officer, Iridium. “As we continue to de-lever our balance sheet, Iridium and our shareholders will increasingly see the fruits of the financial transformation we have been working towards.”

“This year has been filled with many major milestones for Iridium, including completion of the Iridium NEXT program, launching of Iridium Certus® broadband service, the signing of a seven-year contract with the U.S. government and many more,” said Matt Desch, chief executive officer, Iridium. “The refinancing of our credit facility is perhaps the most significant financial development for Iridium since the signing of the BPI export credit facility about a decade ago that launched our network evolution.  This was the final step in our financial transformation and unlocks benefits for Iridium and its shareholders.”

Deutsche Bank AG New York Branch is serving as Administrative Agent and Collateral Agent, while Deutsche Bank Securities Inc., Barclays Bank PLC, Credit Suisse Loan Funding LLC, Wells Fargo Securities, LLC and Société Générale acted as joint lead arrangers and bookrunners.

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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 recently completed its next-generation satellite network and launched its new specialty broadband service, Iridium Certus.  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