The Iridium '‘Team’'. Issues in Iridium. How Valuable is Reputation and Quality of Sponsor What Risks are Debt Risks versus Equity Risks Marketing Risks Pricing of Product Convenience of Product Technology and Pricing Flexibility What is the capacity if lower price and increase volumes.
$880 million bridge financing
66 Low earth orbiting satellites
International charges $4-7 per minute
Handsets cost $3,000 each
Launched 72; got 67; 5-year life each
12 Ground Stations
Handset Cost = US$3,000
Call Cost = US$3.00-US$7.50 per min.
US$800 million PF
LIBOR + 4%; 2-year Bullet
According to one story an investor called the rating agency Standard & Poor’s and asked what would happen to default rates if real estate prices fell.
“The man at S&P couldn’t say; its model for home prices had no ability to accept a negative number. ‘They were just assuming home prices would keep going up…’”