By Paul A. Harris
Portland, Ore., March 16 – Iridium Communications Inc. priced a $360 million issue of five-year senior notes (Caa1/CCC) at par to yield 10¼% on Friday, according to market sources.
The yield printed at the tight end of the 10¼% to 10½% yield talk, which was also the early guidance on the deal, sources said.
Deutsche Bank Securities Inc. managed the sale.
The McLean, Va.-based mobile voice and data satellite communications network plans to use the proceeds to make $59.9 million of deferred payment obligations by repaying all amounts outstanding under the company’s bills of exchange with Thales Alenia Space France, including interest and insurance.
Proceeds will also be used to make $44.4 million of milestone payments to Thales under the Full Scale System Development contract between Iridium Satellite LLC and Thales.
In addition, proceeds will be used to fund $87 million into the debt service reserve account under the company’s existing $1.8 billion credit facility. Any remaining proceeds will be used for general corporate purposes.
| Issuer: | Iridium Communications Inc.
|
| Amount: | $360 million
|
| Tenor: | Five years
|
| Securities: | Senior notes
|
| Manager: | Deutsche Bank Securities Inc.
|
| Coupon: | 10¼%
|
| Price: | Par
|
| Yield: | 10¼%
|
| Call protection: | Two years
|
| Trade date: | March 16
|
| Settlement date: | March 21
|
| Ratings: | Moody's: Caa1
|
| S&P: CCC
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 10¼% to 10½%
|
| Marketing: | Roadshow
|
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