MCLEAN, Va., Sept. 28, 2012 (GLOBE NEWSWIRE) -- Iridium Communications Inc. (Nasdaq:IRDM) ("Iridium") today announced that it has priced a private offering of 1,000,000 shares of 7% Series A Cumulative Perpetual Convertible Preferred Stock, with a liquidation preference of $100 per share (the "Preferred Stock").
The Preferred Stock will be sold in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to other qualified investors in reliance on Regulation S under the Securities Act. The sale of the Preferred Stock is expected to close on October 3, 2012, subject to customary closing conditions.
Holders of the Preferred Stock will be entitled to receive cumulative cash dividends, if and when declared by Iridium's board of directors, accruing at a rate of 7% per annum (equivalent to an annual rate of $7.00 per share), subject to adjustment in certain circumstances. The dividend on each share of Preferred Stock is payable quarterly in arrears, commencing on December 15, 2012.The Preferred Stock will be convertible, at the holder's option, into common stock of Iridium at an initial conversion rate of 10.6022 shares of common stock per share of Preferred Stock, which is equivalent to an initial conversion price of approximately $9.43 per share. The conversion price will be subject to customary adjustments in specified circumstances. On or after October 3, 2017, the Company may, at its option, cause the conversion of some or all of the Preferred Stock into common stock at the then prevailing conversion rate, subject to specified conditions. Iridium estimates that the net proceeds from the offering will be approximately $97 million, after deducting the initial purchaser's discounts. The Company intends to use the net proceeds of the offering to help fund the continued development of Iridium NEXT and for other general corporate purposes.
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