NEW YORK-Iridium L.L.C., which plans to launch a satellite-based global telephone service, last week registered with the Securities and Exchange Commission for an application to take the company public.
Iridium, headquartered in Hamilton, Bermuda, is an indirect subsidiary of Motorola Inc., which formed the satellite telecommunications consortium.
Motorola owns about 25 percent of Iridium, and would receive most of the proceeds of the initial public offering to repay services rendered.
In its filing with the SEC, Iridium World Communications Ltd., the funding body for the consortium, proposed to sell 10 million shares of common stock, priced between $19 and $21 each. Merrill Lynch & Co., New York, is lead manager of the initial public offering.
Net proceeds of approximately $186 million expected to be raised would be used to purchase Class One interests in Iridium in accordance with the terms of a 1997 subscription agreement. In turn, proceeds from the sale of the Class One interests in Iridium will be used to make milestone payments under the space system contract and the terrestrial development contract and for other general corporate purposes.
Iridium World is an offshoot of Iridium L.L.C., which is the entity bringing together the international consortium of 17 companies and organizations to construct a 66-satellite low-earth-orbit global mobile telephone network. Other members of Iridium include Sprint Corp., Lockheed Martin Corp. and Raytheon Co.
Of the 10 million shares of Class A common stock envisioned for the IPO, 8 million are planned for sale in the United States.
