By late afternoon, shares had dropped 4% to $7.32.
In a statement, the company said it would sell $45 million worth of common stock and aggregate gross proceeds of $125 million in its convertible series B share offering.
Virginia-based Iridium said it intends to use net proceeds for general corporate purposes, which may include "capital expenditures, including development and deployment of the Iridium NEXT system, working capital and general and administrative expenses."
Raymond James, Deutsche Bank and William Blair will act as as joint book-running managers for the common stock offering. Deutsche Bank and Raymond James are acting as joint book-running managers for the convertible preferred stock offering, while Canaccord Genuity and Societe Generale are acting as co-managers.
TheStreet Ratings team rates IRIDIUM COMMUNICATIONS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate IRIDIUM COMMUNICATIONS INC (IRDM) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."