[Satellite TODAY 08-06-10] Iridium Communications
has received interest rate commitments on the $1.8 billion credit facility it secured with French credit export agency Coface
and a syndicate of international banks in June to finance the construction of the company’s next-generation satellite constellation, Iridium Next, the operator announced Aug. 5.
The facility will bear an interest rate of less than 6 percent, the majority of which will be fixed rate and will have a repayment term from 2017 through 2024. Iridium expects to sign the credit facility in September and close shortly thereafter.
“This represents another important milestone for Iridium, and we are extremely pleased with the interest in our facility and corresponding support for Iridium. The development of Iridium Next is in full swing with our prime contractor, Thales Alenia Space
, and we’re on target to launch the first Iridium Next satellites in early 2015,” Iridium CEO Matt Desch said in a statement. Raymond James
Analyst Chris Quilty said Iridium secured a favorable interest rate on its Coface loan. “Iridium’s financing puzzle is now effectively solved. The company’s cost of money is well below what we had originally modeled (a 9 percent borrowing cost), and the favorable repayment terms will further-boost Iridium’s near-term cash flows. The only remaining questions are: When, exactly, will the deal close, and just how cheap will the package be?”
Coface Financing Shows Faith in Iridium s Next-Gen Ambitions Satellite News June 21, 2010[Satellite News 06-21-10] Questions over the financial feasibility of global MSS satellite company Iridium Communications Iridium Next constellation have been answered by the securing of a $1.8 billion credit facility from Coface on June 2, which...Iridium Renews Long-Term O&M Partnership With Boeing Satellite Today July 23, 2010[Satellite TODAY 07-23-10] Iridium Communications has signed two long-term agreements designating Boeing as Iridium s sole operations and maintenance (O&M) provider for the current Iridium constellation and grants Boeing exclusive O&M rights for...Iridium Establishes Operations in South Africa Satellite Today June 23, 2010[Satellite TODAY 06-23-10] Iridium Communications has set up Iridium South Africa, an entity that will allow Iridium to operate, provide and sell mobile satellite services (MSS) in the country, Iridium announced June 22. The authorization...