Iridium Acquired by GHL
[Satellite Today 09-23-08] Iridium signed an agreement with GHL Acquisition Corp. Sept. 23 that will eliminate Iridium’s debt of about $131 million and allow the mobile satellite service provider to develop its next generation satellite constellation, Iridium Next.
Under terms of the transaction, which sets the enterprise value of Iridium at about $591 million, Iridium and GHL will merge to form Iridium Communications Inc. GHL’s stockholders will own about 55 percent of Iridium’s common shares, while owners of Iridium will receive about $77 million of cash and 36 million common shares upon completion of the transaction. Greenhill & Co., which has invested about $23 million in Iridium convertible debt, will receive about 2.3 million common shares.
Prior to closing of the transaction, Iridium also may make up to $15 million of further distributions to its existing shareholders.
Satellite Today spoke with Iridium Vice President Don Thoma in a feature available to premium subscribers of Satellite News, the top source of information for satellite industry executives. To get the latest news from inside the industry, subscribe to our premium weekly newsletter at www.satellitetoday.com/VIP