MSS operator Iridium has announced that its Coface-backed US$1.8bn credit facility is oversubscribed and that it expects to sign the facility in September.
As SatelliteFinance reported last week, syndication is close to completion and that the banking…
MSS operator Iridium has announced that its Coface-backed US$1.8bn credit facility is oversubscribed and that it expects to sign the facility in September.
As SatelliteFinance reported last week, syndication is close to completion and that the banking group comprises a mix of European, Anglo-Saxon and Japanese banks. Iridium stated that the closing of the facility will be subject to customary conditions as well as conditions relating to the then-current Euro-to-dollar exchange rate.
The company also confirmed that the facility will bear a competitive interest rate of below 6%, the majority of which will be fixed rate. The senior secured term loan will mature in 2024 with repayment beginning from 2017.
Matt Desch, Iridium’s CEO, commented, “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’s second generation satellite constellation is estimated to cost US$2.9bn in total, including a US$492m launch contract with SpaceX for all 72 satellites.
Societe Generale, Goldman Sachs and Hawkpoint are advising Iridium on the debt financing, which is 95% guaranteed by French export credit insurance agency Coface.
