Iridium Communications got its network of 66 satellites officially online in February and is now reaping the benefits of its investment.
A $738.5 million award from the Department of Defense, announced by Iridium on Monday, puts the company in a position to improve its financing and benefit its shareholders.
"This DOD contract sets the table for our refinancing which sets the table for our ability to do shareholder friendly type things," Iridium CFO Thomas Fitzpatrick told CNBC. Scheimreif said that Iridium has about 1.2 million total subscribers for its network, so government makes about 10% of those. Because Iridium's been "growing on the commercial side very fast," Scheimreif says that he doesn't see government subscribers making up more than 20% of the network even after itWhile Iridium's stock ticked as much as 5% higher in premarket trading on Monday after the Pentagon announcement, it ended the day down nearly 5% at $25.22 a share.
"Our services are unique and complementary, and we know that customers are looking for the capabilities of both our low-Earth-orbiting networks," Iridium CEO Matt Desch said in a statement.Iridium used export credit financing through the French agency Bpifrance Assurance Export to finance the construction of the $3 billion Iridium NEXT network of satellites.
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