Iridium to repay all debt as part of merger with GHL Acquisition

By Sara Rosenberg

New York, Sept. 23 - Iridium Holdings LLC plans on retiring all of its net debt, which is about $131 million, in connection with its combination with GHL Acquisition Corp., according to a news release.

Under the transaction, current shareholders of Iridium will receive about $77 million of cash and 36 million common shares, remaining cash held in trust will be used to repay Iridium's debt and for general corporate purposes and capital expenditures, and Greenhill & Co. Inc. will invest about $23 million of Iridium convertible debt to be used for distributions to existing Iridium investors.

The transaction values Iridium at about $591 million enterprise value.

Completion of the transaction is expected to occur in the first part of 2009, subject to Federal Communications Commission approval, expiration of the applicable Hart-Scott-Rodino waiting period, GHL Acquisition stockholder approval and other customary conditions.

Iridium is a Bethesda, Md.-based provider of voice and data mobile satellite services. GHL is special purpose acquisition company sponsored by Greenhill & Co.

Following completion of the transaction, the combined enterprise will be renamed Iridium Communications Inc.

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