Iridium Communications - Warrants (IRDMW)

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Iridium Announces Planned Exchange Offer for $7.00 Warrants

Date : 09/28/2012 @ 8:05AM
Source : GlobeNewswire Inc.
Stock : Iridium Communications - Warrants 02/14/2013 (MM) (IRDMW)
Quote : $1.25 0.02 (1.63%) @ 3:24PM

Iridium Communications Inc. (Nasdaq:IRDM) ("Iridium") today announced its intention to conduct an offer to exchange its outstanding $7.00 warrants for Iridium common stock. The Company plans to offer holders of its $7.00 warrants one share of common stock for every six warrants tendered (equivalent to approximately 0.1667 shares for every warrant tendered). Iridium expects to commence the exchange offer as early as October 1, 2012.

The warrants currently trade under the symbol IRDMW on the NASDAQ Stock Market. Some of the warrants are included in Iridium's outstanding Units, which trade under the symbol IRDMU on the NASDAQ Stock Market.

Iridium also announced that on September 24, 2012, it entered into privately negotiated warrant exchange agreements with funds managed by T2 Partners Management, L.P. ("T2"), the largest holder of its outstanding $7.00 warrants. Pursuant to these agreements, Iridium issued 562,370 new shares of its common stock in exchange for 3,374,220 of the $7.00 warrants held by the T2 funds, representing approximately 27% of the outstanding $7.00 warrants.

Following these exchanges, Iridium has 8,979,434 outstanding $7.00 warrants, including 632,726 that are included in the Units. "The preferred stock offering we announced today satisfies our capital raise obligation under our recent credit facility amendment and is part of our fully funded plan for the construction of our next generation satellite constellation, Iridium NEXT," said Matt Desch, chief executive officer, Iridium. "With that obligation satisfied, the warrant proceeds are no longer required, and we can undertake the planned warrant exchange tender offer."

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*PPS of IRDM on 10/9/2012 is $7.62