By Rebecca Melvin
New York, May 9 - Iridium Communications Inc. priced $125 million of cumulative perpetual convertible preferreds, or 500,000 shares with a $250 per share liquidation preference, to yield 6.75% with an initial conversion premium of 22.5%, according to a term sheet.
Pricing came at the cheap end of 6.25% to 6.75% dividend talk and at the midpoint of the talked 20% to 25% premium.
Iridium also sold $45 million of common stock, or 7,377,050 shares at $6.10 a piece, in a concurrent public offering. The common stock deal has a $6.75 million over-allotment option.
The registered, off-the-shelf preferred offering was sold via Deutsche Bank Securities Inc. and Raymond James & Associates Inc. as joint bookrunning managers.
The preferreds are not convertible for five years and then are provisionally callable if shares exceed 150% of the conversion price.
Proceeds will be used for general corporate purposes, which may include capital expenditures, including development and deployment of the Iridium NEXT system, working capital and general and administrative expenses.
The preferred shares will be listed on the Nasdaq Global Select Market under the symbol "IRDM.B."
Iridium is a McLean, Va.-based mobile satellite services company.
| Issuer: | Iridium Communications Inc.
|
| Issue: | Convertible perpetual preferred stock (500,000 shares)
|
| Amount: | $125 million
|
| Maturity: | Perpetual
|
| Bookrunners: | Deutsche Bank Securities Inc., Raymond James & Associates Inc.
|
| Co-managers: | Canaccord Genuity, Societe Generale
|
| Dividend: | 6.75%
|
| Liquidation price: | $250
|
| Yield: | 6.75%
|
| Initial conversion premium: | 22.5%
|
| Initial conversion price: | $7.47
|
| Initial conversion rate: | 33.4560 shares
|
| Provisional call: | On or after May 15, 2019 at issuer's option at 150% hurdle
|
| Takeover protection: | Yes
|
| Distribution: | Registered, off the shelf
|
| Pricing date: | May 8
|
| Settlement date: | May 14
|
| Common stock symbol: | Nasdaq: IRDM
|
| Preferred stock symbol: | Nasdaq: IRDM.B
|
| Stock price: | $6.13, as of close May 8
|
| Stock reference price: | $6.10
|
| Market capitalization: | $500 million
|
| Price talk: | 6.25% to 6.75% dividend, 20% to 25% premium
|
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