Iridium Communications Inc · NASDAQ:IRDM
Iridium Communications — GHL Acquisition — SPAC Merger (December 2008)
25 slides from Iridium Communications's SPAC merger presentation, Dec 15, 2008
Slide 1: Forward Looking Statements
Forward Looking Statements - ------------------------------------------------------------------------------- This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
Slide 2: Additional Information and Where to Find It
Additional Information and Where to Find It - ------------------------------------------------------------------------------- This communication is being made with respect to a proposed acquisition and related transactions involving GHQ and Iridium. In connection with these proposed transactions, GH
Slide 3: Participants in the Solicitation
Participants in the Solicitation - ------------------------------------------------------------------------------- GHQ and its directors and officers may be deemed to be participants in the solicitation of proxies to GHQ's stockholders in connection with the acquisition. A list of the names of those
Slide 4: Global Network Providing Unique Capabilities
Global Network Providing Unique Capabilities - ------------------------------------------------------------------------------- Iridium is the world's largest and most sophisticated commercial satellite network providing global communications on the move - people, vehicles, aircraft, vessels, assets
Slide 5: Leader in Mobile Satellite Communications
Leader in Mobile Satellite Communications - ------------------------------------------------------------------------------- o Fastest growing full-service provider of mobile satellite services (MSS) o Highly defensible position with little direct competition o Strong and consistent financial perform
Slide 6: Attractive, Defensible Business Model
Attractive, Defensible Business Model - ------------------------------------------------------------------------------- Iridium has a highly sustainable business model over both the long and short term o Superior product and service offering o Low latency, high call quality satellites providing trul
Slide 7: Strong Growth Trajectory
Strong Growth Trajectory - ------------------------------------------------------------------------------- Iridium has grown rapidly and consistently, as measured by subscribers, revenues and Operational EBITDA The Company's Q308YTD Operational EBITDA has already far exceeded its Operational EBITDA
Slide 8: Strong and Consistent Growth
Strong and Consistent Growth - ------------------------------------------------------------------------------- Iridium has been and continues to be on an impressive growth trajectory, recently experiencing some of the strongest months of operation in its history o Significant Long-Term and Recent Gr
Slide 9: Strong Position in Growing Market
Strong Position in Growing Market - ------------------------------------------------------------------------------- Iridium has grown consistently since its re- launch, with subscribers and revenue growing at compound annual rates of 32% and 31% respectively, from 2002-2007 o Attractive market for m
Slide 10: Superior Competitive Position
Superior Competitive Position - ------------------------------------------------------------------------------- Iridium has superior coverage and network advantages relative to competitors and is growing market share [ [GRAPHIC] Source: Euroconsult, Company Filings, and Raymond James Equity Research
Slide 11: Global, Premium, and Profitable Iridium Position Relative to Competitors
Global, Premium, and Profitable Iridium Position Relative to Competitors - ------------------------------------------------------------------------------- [GRAPHIC] Source: Iridium. 12
Slide 12: Strong Presence in Critical Applications
Strong Presence in Critical Applications - ------------------------------------------------------------------------------- Maritime Aviation 35% of commercial traffic 18,000+ aircraft in international waters equipped Crew calling Flight following Fisheries mgmt Cockpit communications Man-overboard A
Slide 13: Defense Department Anchor Tenant Customer
Defense Department Anchor Tenant Customer - ------------------------------------------------------------------------------- Iridium is an embedded part of DoD communications infrastructure since inception, with many new opportunities for growth Total Subscribers (9/30/08) U.S. Commercial Government
Slide 14: Growth-Oriented Wholesale Distribution Model
Growth-Oriented Wholesale Distribution Model - ------------------------------------------------------------------------------- [GRAPHIC] A Growing Network of Iridium Partners Providing Solutions to End-Customers Partners do Much of the Legwork in Developing New Products & Applications 15
Slide 15: Iridium NEXT - Our Second Generation
Iridium NEXT - Our Second Generation - ------------------------------------------------------------------------------- Iridium expects to fund the capital requirements ($2.7 billion) primarily from internally generated cash flows and proceeds from secondary payloads Management sees no need for addit
Slide 16: Opportunity to Share NEXT Infrastructure
Opportunity to Share NEXT Infrastructure Including secondary payloads on NEXT may significantly defray overall capital costs o Significant interest from Government and industry in sharing NEXT global networked communications infrastructure for space observation o Secondary payloads deployed on NEXT
Slide 17: Summary Financial Statements
Summary Financial Statements Iridium has successfully added subscribers rapidly and profitably over its operating history ($ in millions, subscriber data in Years Ended December 31, thousands) 9 Months Ended Sep. 30, 2002 2003 2004 2005 2006 2007 2007 ((2)) 2008 ((2)) Subscribers: Commercial 46.2 71
Slide 18: Iridium's Key Growth Strategies
Iridium's Key Growth Strategies Iridium's largely fixed cost business model allows a significant portion of any incremental new revenue to fall to the bottom line o Continued Growth in Subscribers and Market Share o Superior service offering and coverage advantage o Network allows lower overall cost
Slide 19: Transaction with GHQ Progressing to Plan
Transaction with GHQ Progressing to Plan o Iridium to become a publicly-listed company through a reverse acquisition transaction with GHL Acquisition Corp. ("GHQ") o Iridium sees significant benefits from the transaction o Significant, immediate balance sheet enhancement o More efficient ongoing acc
Slide 20: Transaction Summary
Transaction Summary Acquirer o GHL Acquisition Corp. ("GHQ") Target o Iridium Holdings LLC Structure o Acquisition o Cash: $100 million ($22.9 million upfront from Greenhill investment; $77.1 million upon closing from GHQ cash balances) o Up to $15 million additional cash pre-closing from Iridium ba
Slide 21: Transaction Summary (cont'd)
Transaction Summary (cont'd) GHL o Lockups Lockup on GHQ securities owned by GHL extended to 1 year (from 180 days), except sales via underwritten secondary offerings approved by Iridium Board after 6 months Iridium Shareholder Lockups o No sales of GHQ shares for 1 year, except sales via underwritt
Slide 22: Iridium Benefits from Greenhill Sponsorship
Iridium Benefits from Greenhill Sponsorship Why is Iridium entering the public markets through a reverse acquisition with GHQ? GHQ Represents a Unique Sponsor o Sponsorship enhances appeal to prospective customers o Greenhill telecom expertise and advice o Greenhill investing track record generally
Slide 23: Transaction Valuation / Operating Comparison
Transaction Valuation / Operating Comparison The Iridium transaction represents an attractive valuation relative to the Company's nearest competitor Iridium's valuation is made even more attractive by its higher growth, lower leverage and superior network coverage ($ in millions, except per share an
Slide 24: Well-Positioned For the Future
Well-Positioned For the Future The transaction allows Iridium to emerge as a public company with no net debt, ready to fund continuing growth o High quality business o One of only two major players in the sector (Inmarsat the other) o Only provider with truly global service o US Department of Defens
Slide 25: Well-Positioned For the Future
Well-Positioned For the Future The transaction allows Iridium to emerge as a public company with no net debt, ready to fund continuing growth High quality business » One of only two major players in the sector (Inmarsat the other) » Only provider with truly global service » US Department of Defense