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Satnews Daily
May 6th, 2014

Iridium Communications—More Than 7-1/2 Million Shares Issued (Business—Finance)

[SatNews] Iridium Communications Inc. (Nasdaq:IRDM) ("Iridium") has entered into a stock purchase agreement pursuant to which Iridium will issue 7,692,308 shares of Iridium's common stock directly to certain Baron funds at a price of $6.50 per share for aggregate gross proceeds of $50,000,002—delivery and payment occurred on May 5th.

Under the stock purchase agreement, if, during the period commencing on May 3, 2014, and ending on July 31, 2014, (the 90-day period following the date of the stock purchase agreement), or the protection period, Iridium issues or sells either (i) convertible securities with an exercise or conversion price lower than $7.9625, or (ii) common stock at an issue price lower than $6.50, in either case other than options or other securities issued under the Iridium 2009 Stock Incentive Plan or the Iridium 2012 Equity Incentive Plan, then Iridium is obligated to deliver, within ten calendar days of the end of the protection period, to each purchaser in the direct offering in the same proportion as the number of shares purchased by such purchaser in the direct offering, additional shares determined in accordance with the formula set forth in the stock purchase agreement, or protection shares; provided, however, that the number of protection shares to be delivered: (x) collectively to the purchasers under the stock purchase agreement shall not, when aggregated with the number of shares purchased in the direct offering, be greater than 9.99% of all issued and outstanding shares of common stock at the time of delivery of the protection shares, and (y) shall not, in the aggregate, exceed the limit at which the approval of Iridium's stockholders would be required under rules of The Nasdaq Global Select Market.

Iridium intends to use the proceeds from this direct offering 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.

The Iridium Communications' infosite is located at http://www.iridium.com/