Aireon Completes Requirements for Third Investment from Nav Canada
[Via Satellite 06-30-2014] Aireon, the joint venture between Iridium Communications and three European Air Navigation Service Providers (ANSPs), completed all the requirements for its third tranche investment from Nav Canada totaling $65 million, of which $32.5 million was funded on June 19, 2014. The second half of the tranche will be allocated in the first quarter of 2015. This brings the total investment in Aireon by Nav Canada to $120 million and will increase its fully diluted common equity position to 36.5 percent, on a post conversion basis.
Aireon will soon receive the second tranche of investments from its other three ANSP investors: Enav of Italy, the Irish Aviation Authority (IAA) and Naviair of Denmark. Total payments of $12.5 million are expected to close on or near to July 2, 2014, with an additional $12.5 million expected to close in the first quarter of 2015. Enav, IAA and Naviair will collectively increase ownership in Aireon by 3.1 percent, bringing their combined fully diluted common equity position to 10.6 percent.
Nav Canada committed to a total investment of $150 million in Aireon between 2012 and 2017, and Enav, IAA and Naviair committed to a total investment of $120 million between 2014 and 2017 for their preferred membership interests. With these investments, Aireon predicts it will be able to meet the capital requirements to deploy the Aireon system.