Iridium Communications revises price talk for $1.638B term loan repricing

A Deutsche Bank-led arranger group has revised guidance on the proposed repricing of Iridium Communications Inc.'s $1.638 billion covenant-lite term loan B due November 2026, according to sources. Commitments remain due at 3 p.m. ET on Jan. 14.

Price talk is now L+275 with a 1% Libor floor and an issue price of par. Prior guidance was L+275-300 at 99.75. Lenders are offered six months of 101 soft call protection.

At the revised talk, the yield to maturity is roughly 3.80%, down from 3.86%-4.11%.

Barclays, Credit Suisse and Wells Fargo are joint bookrunners on the deal. Deutsche Bank is administrative agent.

For reference, existing pricing on the loan is L+375, with a 1% floor. It was originally issued as a $1.45 billion tranche in October 2019 and the company returned in January 2020 with a $200 million add-on to repay unsecured notes.

Existing facility ratings are BB/B1, with a 2 recovery rating from S&P Global Ratings. Corporate ratings are B+/B1 with positive outlooks from both agencies. Iridium Satellite LLC is the borrower.

Iridium provides mobile voice and data communications services through satellite to businesses, the U.S. and foreign governments, nongovernmental organizations and consumers worldwide.