Iridium launches $125 million add-on term loan at 99.75 area OID

By Sara Rosenberg

New York, March 13 – Iridium Communications Inc. was scheduled to hold a lender call at 3 p.m. ET on Wednesday to launch a fungible $125 million add-on covenant-lite first-lien term loan B due Sept. 20, 2030 that is talked with an original issue discount in the 99.75 area, according to a market source.

Pricing on the add-on term loan is SOFR plus 250 basis points with a 0.75% floor, in line with existing term loan B pricing.

Deutsche Bank Securities Inc., Barclays, RBC Capital Markets and Wells Fargo Securities LLC are the bookrunners on the deal.

Commitments are due at noon ET on Thursday, accelerated from 5 p.m. ET on Thursday shortly after the lender call took place, the source added.

Proceeds will be used to fund the roughly $115 million acquisition of 80% of Satelles Inc. that Iridium does not already own. Iridium had an ownership stake of around 20% in Satelles from three previous investments in the company.

Closing is expected in the next few weeks.

Pro forma for the transaction, the term loan B will total $1.625 billion.

Iridium is a McLean, Va.-based provider of voice and data satellite communications. Satelles is a provider of highly secure satellite-based time and location services.

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