WASHINGTON-Sixty-two banks participated in the syndication of a $750 million interim credit facility for Iridium L.L.C. To date, committed funds raised by Iridium total $2.65 billion, said the company.
Chase Securities Inc. and the investment unit of Barclays Bank plc arranged the $750 million loan and Motorola Inc.-system inventor, project leader and prime contractor for Iridium-is providing credit support.
Iridium noted that a longer-term credit facility, intended to replace the $750 million loan, is being structured and is targeted for $2.6 billion.
This credit facility, which could be completed by the end of the year, is expected to fulfill the funding requirements to operate Iridium L.L.C. and the construction, launch and implementation of the Iridium system.
“We currently expect the first satellites to be launched late this year, ahead of contract schedule,” commented Robert Kinzie, Iridium’s chairman and chief executive officer. Commercial service is slated for 1998.
Among Iridium’s investors are Bell Canada, Cable & Wireless plc, DDI Corp., Korea Mobile Telecom, Lockheed-Martin Corp., Raytheon Co., Sprint Corp., STET (Societa Finanziaria Telefonica Per Azioni) and Vebacom GmbH, said Iridium. The investment group has contributed more than $1.9 billion to Iridium.
The company said it expects the Iridium system to be the first operational network capable of providing worldwide wireless telecommunications via handheld telephones and pagers.
