Iridium Communications (IRDM) 8-K Business Update & Iridium NEXT

Iridium Communications Inc.

Business Update & Iridium NEXT

Financing Strategy

February 9, 2010

Includes selected financial data through Q3 2009

Exhibit 99.1

Disclaimer

Safe Harbor Statement

This

presentation

contains

statements

about

future

events

and

expectations

known

as

“forward-looking

statements”

within

the

meaning

of

Section

27A

of

the

Securities

Act

of

1933,

as

amended

(the

“Securities

Act”),

and

Section

21E

of

the

Securities

Exchange Act of 1934, as amended (the “Exchange Act”).  We have based these statements on our current expectations and

the information currently available to us.

The words “anticipates,”

“may,”

“can,”

“believes,”

“expects,”

“projects,”

“intends,”

“likely,”

“will,”

“to be”

and other

expressions that are predictions of or indicate future events, trends or prospects and which do not relate to historical matters

identify

forward-looking

statements.

Forward-looking

statements

in

this

presentation

include

statements

about

expected

Operational EBITDA, Operational EBITDA margins and the expected availability and potential sources of financing for Iridium

NEXT. All statements other than statements of historical fact are statements that could be deemed forward-looking

statements.

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may

cause our actual results, performance or achievements to differ materially from any future results, performance or

achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not

limited to, uncertainties regarding levels of demand for mobile satellite services, expected Operational EBITDA, Operational

EBITDA margins, growth in subscribers and revenue, the development of future products, and the development and availability

of financing for Iridium NEXT, as well as industry and economic conditions, competitive, legal, governmental and technological

factors,

as

well

as

those

factors

listed

under

the

caption

“Risk

Factors”

of

our

Form

10-Q

for

the

quarter

ended

September

30,

2009, as filed with the SEC on November 16, 2009.  There is no assurance that our expectations will be realized.  If one or

more of these risks or uncertainties materialize, or if our underlying assumptions prove incorrect, actual results may vary

materially from those expected, estimated or projected.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date

hereof.  We undertake no obligation to release publicly any revisions to any forward-looking statements after the date they are

made, whether as a result of new information, future events or otherwise.

2

Basis of Presentation

•

Reporting

Entity

The financial / operating results (other than those included in the Appendix on page 20) are the consolidated results for Iridium

Holdings LLC only and do not include the separate operating results of GHL Acquisition Corp. (now called Iridium Communications

Inc.)

The

Iridium

Holdings

LLC

results

discussed

in

this

presentation

are

for

the

period

from

July

1

through

September

29,

2009

(Q309)

and

for

the

period

January

1

through

September

29,

2009

(YTD09),

the

day

on

which

GHL

Acquisition

Corp.

acquired

Iridium

Holdings

LLC

(the

“Acquisition”)

and

effectively

ended

Iridium

Holdings

LLC’s

third

quarter.

However,

the

Iridium

Communications

Inc.

results

discussed

in

the

Appendix

to

this

presentation

are

for

the

three

and

nine

months

ended

September

30,

2009

and

2008.

•

Non-GAAP Measures

In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles, or

GAAP, the Company discloses Operational EBITDA, which is a non-GAAP financial measure, as a supplemental measure to help investors

evaluate its fundamental operational performance. Operational EBITDA represents earnings before interest; income taxes; depreciation

and

amortization;

Iridium

NEXT

revenue

and

expenses

(for

periods

prior

to

the

deployment

of

Iridium

NEXT

only);

expenses

associated

with the transaction with GHL Acquisition Corp.; and stock-based compensation expenses.  In future periods, Operational EBITDA will

also

exclude

the

impact

of

purchase

accounting

adjustments

and

the

change

in

the

fair

value

of

the

warrants.

Operational

EBITDA

does

not represent and should not be considered an alternative to GAAP measurements, such as net income, and Iridium’s calculations

thereof may not be comparable to similarly entitled measures reported by other companies.  A reconciliation of Operational EBITDA to

net

income

(loss),

its

most

comparable

GAAP

financial

measure

is

included

in

the

Appendix

to

this

presentation.

By

eliminating

interest,

income taxes, depreciation and amortization, transaction expenses associated with the Acquisition, stock-based compensation

expenses, Iridium NEXT revenue and expenses (for periods prior to the deployment of Iridium NEXT only) and purchase accounting

adjustments,

the

Company

believes

the

result

is

a

useful

measure

across

time

in

evaluating

the

Company’s

fundamental

core

operating

performance. Management also uses Operational EBITDA to manage the Company’s business, including in preparing its annual operating

budget, financial projections and compensation plans.  The Company believes that Operational EBITDA is also useful to investors

because similar measures are frequently used by securities analysts, investors and other interested parties in their evaluation of

companies in similar industries. As indicated, Operational EBITDA does not include interest expense on borrowed money or depreciation

expense on its capital assets or the payment of income taxes, which are necessary elements of the company’s operations. It also

excludes

expenses

in

connection

with

the

development,

deployment

and

financing

of

Iridium

NEXT.

Because

Operational

EBITDA

does

not account for these and other expenses, its utility as a measure of the Company’s operating performance has material limitations.

Because of these limitations, the Company’s management does not view Operational EBITDA in isolation and also uses other

measurements,

such

as

net

income,

revenues

and

operating

profit,

to

measure

operating

performance.

3

Business Update

Our Company

•

Satellite voice and data solutions for

enterprise & government

•

The only provider offering 100% worldwide coverage

•

Unique, resilient mesh satellite architecture

•

66 satellite Low Earth Orbit (LEO) constellation

•

~359,000

subscribers

(1)

•

Anchor U.S. DoD

customer –

23% of revenue for

YTD09

(2)

•

Complements terrestrial wireless solutions

•

Less than 10% of the earth’s surface is served by

terrestrial wireless systems

•

Expanding portfolio of products & services sold

via a broad distribution network

•

Data services growing rapidly

5

1)

Of our 359,000 subscribers at September 29, 2009, 5.6% maintained a suspended account on

such date.

2)

Includes direct and indirect DoD revenues and revenues from certain other governmental

entities through the DoD gateway.

Our

Unique

Attributes

-

How

we compete

Iridium is a unique company with exciting growth opportunities

Only Mobile Communications Provider Capable of 100% Global Coverage

•

Geostationary Earth Orbit (GEOs) are limited in serving users above 70°

latitude

•

Other LEOs

have limitations, e.g. serving maritime customers

•

Most of the earth’s surface is not served by terrestrial wireless

Mission Critical to the DoD

•

Dedicated proprietary gateway

•

Significant investment in our equipment

•

Only handhelds offering Type 1 encryption

•

Long-term

relationship

/

up

to

5-year

contract

(1)

A High Quality Voice and Data Solution

•

LEO mesh design provides no unnatural delays

•

Fully mobile; well proven, modern and rugged design

We Deliver Cost-effective Satellite Communications

•

Inherent cost advantages versus GEOs

•

Cost-effective Machine to Machine (M2M) –

rapid growth opportunity

•

Iridium

OpenPort

–

raises

the

bar

in

maritime

communications

6

1)

As is customary for government contracts, Iridium’s DoD contract is structured as a one-year contract with

four one-year options to extend.  The contract currently is in the first one-year option period and three

option periods remain.

Q3 Summary (Iridium Holdings LLC)

•

Commercial and Gov’t

Revenue up 23.0% and

2.1%, respectively, over Q3 2008

•

Subscriber

Base

up

16.1%

from

Q3

2008

(2)

•

Equipment Revenue down 37.0%, or $12.4M,

from Q3 2008

•

Operational

EBITDA

up

28.4%

(3)

•

Strong Liquidity as of end of Q3 2009

•

Unrestricted cash and equivalents of $136M

7

Total Revenue

Service Revenue

Equipment Revenue

Operational EBITDA

Net Income

($M’s)

(1)

Total Revenue, Op

EBITDA & Net Income

1)

Iridium Holdings LLC results are presented as the predecessor company.  Iridium Communications Inc.’s

results of operations for the three and nine months ended September 30, 2008 and 2009 are set forth in the Appendix on page 20.

2)

Subscriber figures include suspended subscribers

3)

Operational EBITDA represents earnings before interest, income taxes, depreciation and amortization,

Iridium NEXT revenue and expenses, expenses associated with the recently completed transaction with

GHL Acquisition Corp. and stock based compensation expenses.  See page 19 for a reconciliation of

Operational EBITDA to Net Income.

Cumulative

Subscribers

(2):

Q3

08

–

309,000;

Q3

09

–

359,000    

Strong Subscriber

and Service Revenue Growth

•

Growing subscriber base driving

recurring service revenue

•

Enterprise and government

end-users

•

Service revenue is predictable

and growing

($M's)

(000's)

Robust Subscriber Growth

1)  Of our 359,000 subscribers at September 29, 2009, 5.6% maintained a suspended account on such date.

$177

$147

$201

$159

$129

Q1 03

Q3 09

8

(1)

Service Revenue

2010 Management Guidance & Valuation

•

Previously announced 2009

Operational EBITDA guidance of

between $126-130M

•

Currently expect 2010

Operational EBITDA between               

$145-155M

•

Played critical role in recent

Haiti rescue and recovery efforts

•

Positive partner sentiment

moving into new year

•

New 9602 M2M device

•

OpenPort

adoption

9

Current Iridium Trading Valuation

Management Guidance

($ in millions, except per-share data)

Share Price as of 2/5/2010

$6.75

x Shares Outstanding

70.2

Market Capitalization

$474.2

Less: Net Cash

(3)

($126.7)

Enterprise Value

$347.5

Divided by: 2010E Operational EBITDA

$150.0

Ent. Value / 2010E Operational EBITDA

2.3x

Comparison to Inmarsat

~10.0x

(Primary Competitor)

(5)

(2)

(4)

Note: Balance

sheet

data

as

of

9/30/09. 

1)

Iridium provided this guidance on  November 13, 2009 and it speaks only as of that date.  We have not yet completed our audit of 2009 financial results and therefore can

make no statement about our actual 2009 results.  We do not intend our inclusion of this guidance to be a reaffirmation or update. 

2)

Includes shares outstanding at 9/30/09 of 68.3M, plus 1.9M shares issued upon the conversion of a subordinated promissory note in October 2009.  

3)

Includes cash and restricted cash, less deferred acquisition consideration.

4)

Represents midpoint of management guidance.

5)

Source: Bloomberg as of 2/5/10.

(1)

Iridium NEXT Financing Strategy

Iridium NEXT Constellation

•

Iridium NEXT will upgrade & replace current

satellite fleet

•

Current fleet expected to provide commercially

acceptable service through transition to Iridium

NEXT

•

Initial launches expected in 2014

•

66 satellite LEO constellation

•

Compatibility with current fleet eases network

transition

•

Iridium NEXT advantages:

•

Will expand capacity to 3M subscribers

•

Higher data speeds

•

Capable of supporting future product

enhancements

•

Designed to host secondary payloads

•

Will maintain Iridium’s unique architecture

11

•

Iridium NEXT prime vendor

selection process provides

opportunity to obtain favorable

government-backed financing

through export credit agencies

(ECAs)

Putting Cost of Iridium NEXT in Perspective

•

$2.7B constellation (current estimated total cost)

•

Assumes

constellation

provides

commercially

acceptable

service

through

2025-2030

(1)

•

Large cash flow potential over constellation life justifies the investment:

•

Iridium expects to fund a substantial portion of Iridium NEXT costs through internally

generated funds, secondary payloads and net cash

•

Starting

net

cash

position

of

$127M

(4)

as

of

September

30,

2009

•

Iridium

NEXT

expenditures

peak

in

2014,

allowing

advance

funding

through

operational

cash

flow

12

1)

Design life is expected to be 7-10 years.  Historically, actual constellation life has significantly exceeded design life.

2)

The

Operational

EBITDA

CAGRs

are

for

illustrative

purposes

only

and

are

not

intended

to

be

and

should

not

be

relied

upon

as management guidance or projections.

3)

Cumulative Operational EBITDA based on midpoint of 2010 Operational EBITDA guidance previously provided by

management ($150M) and assuming Operational EBITDA grows at 10% and 15% per year, respectively.

4)

Represents

cash

and

restricted

cash,

net

of

deferred

acquisition

consideration

relating

to

GHQ

transaction.

5)

Does not include any proceeds from potential exercise of warrants.

6)

For periods after the deployment of Iridium NEXT, Operational EBITDA will not exclude revenues and expenses associated

with

Iridium

NEXT.

See

page

3

-

Basis

of

Presentation.

Illustrative Example

Operational EBITDA CAGR

(2)

:

10%

15%

2010 - 2030:

$9.6 BB

$17.8 BB

Cumulative Operational EBITDA

Generation

(3,6)

(5)

Iridium NEXT Financing Strategy

Target Sources of Debt Financing

•

ECA-Backed Debt Financing

•

Senior debt backed by a government export-financing agency

•

Would likely be issued in conjunction with signing with a

prime contractor to build Iridium NEXT constellation

•

Unsecured Debt

•

Additional unsecured/subordinated corporate debt to the

extent ECA financing not sufficient

Potential

Iridium

NEXT

Funding

Sources

(~$2.7B)

(1)

Internally-

Generated

Operational

Cash Flow

50%

External

Capital

35%

Cash On Hand

5%

Warrant

Proceeds

10%

+

<

•

Substantial portion of capex

for Iridium NEXT is expected to be financed from internal

sources

•

For

remainder

of

financing,

Iridium

is

in

active

discussions

with

two

large

ECAs

to

secure a financing package, including backing/guarantees

•

Seeking support for a facility of up to $1.5B with repayment anticipated to begin in 2017 with a

term of up to 10 years on favorable financing terms

13

(2)

1)

Based on $2.7B total estimated cost; potential warrant proceeds of $261M; and cash / restricted cash on hand as of 9/30/09 

(net of deferred acquisition consideration relating to GHQ transaction).

2)

There are currently outstanding 13.7M warrants with a $7.00 exercise price and 14.4M warrants with an $11.50 exercise price. 

What is ECA-Backed Financing?

•

Export credit agencies (“ECAs”) are private or quasi-governmental

institutions that act as intermediaries between national

governments and exporters to issue export financing

•

Financing can take the form of credits (financial support) or credit

insurance and guarantees (pure cover) or both, depending on the

mandate the ECA has been given by its government

•

ECA-backed financing is used extensively for large capital purchases

in the aerospace industry (i.e., satellites, aviation, etc.)

•

Aerospace ECA-backed financing tends to be longer-term

•

Recent precedents have included flexible, delayed draw-down

mechanisms

•

Nature of Iridium NEXT program creates opportunities for job creation in

line with ECA’s

mission

14

Case Study: Globalstar

ECA-Backed Financing

•

In

June

2009,

Globalstar

executed a

$738M financing plan, consisting of the

following components:

•

$586M ECA senior secured financing

backed by Coface

(~79% of total need)

•

$60M contingent equity (converted)

•

$46M debt service reserve

•

$45M new sub debt or equity

•

Fully funds construction of Globalstar’s

second generation constellation and

four launches

•

Low interest rate of approximately

LIBOR + 207bps through 2012 (rate

cap limits LIBOR exposure to 4%

through 2012)

•

Drawdown period permitted through

late 2011, followed by 8.5 year

repayment schedule

Summary of ECA-Backed Senior Loan

Amount:

$586M (79% of total need)

Coface

Cover:

95% loan guaranty supported by

French Ministry of Finance (Coface)

Interest Rate:

LIBOR + 207bps; rate cap limiting

LIBOR exposure to 4% through 2012

Tenor:

~10.5 year term

Repayment:

Mortgage-style with low-high

structure; interest-only payments

until 2011

Upfront Fee:

2.8% flat structuring fee

Coface

Cover Costs:

(Premium for Guarantee)

6.68% of loan amount

(1)

Covenants:

Maximum capex; minimum liquidity;

other customary covenants

Source:

Globalstar

investor

presentation

dated

1/27/10.

1)

Included in the financing amount of $586M.

15

Status/ Potential Timetable of Iridium-ECA Discussions

•

Separate

applications

have

been

made

to

two

large

ECAs

and

significant discussions held

•

Goldman Sachs, Societe

Generale

and Hawkpoint

are advising Iridium in

these discussions

•

Iridium NEXT prime contractor candidates (Lockheed Martin &

Thales Alenia

Space) are engaged and supporting the process

•

An important component in the contractor selection process will be level

of ECA support

•

Anticipated

closing

in

Summer

2010

in

conjunction

with

selection

of

Iridium

NEXT

prime

contractor

16

Appendix

Iridium Holdings LLC Summary Q3 Highlights

($M; except subscriber data)

Q3 09

Q3 08

% Change

YTD 09

YTD 08

% Change

Subscribers  (at end of period ) (1)

359,000

309,000

16.1%

Revenue

Commercial service

Voice

39.5

32.6

21.2%

108.2

89.3

21.2%

M2M Data

4.3

2.9

48.3%

12.1

7.6

59.2%

Other Revenue

0.1

0.2

-50.0%

0.4

0.7

-42.9%

Total Commercial Service

43.9

35.7

23.0%

120.7

97.6

23.7%

Government service

Voice

13.3

13.2

0.8%

39.6

39.1

1.3%

M2M Data

0.2

0.1

100.0%

0.5

0.2

150.0%

Other Revenue

5.9

5.7

3.5%

15.9

9.5

67.4%

Total Government Service

19.4

19.0

2.1%

56.0

48.8

14.8%

Equipment

21.1

33.5

-37.0%

66.2

97.8

-32.3%

Total Revenue

84.4

88.2

-4.3%

242.9

244.2

-0.5%

Operational EBITDA

38.4

29.9

28.4%

103.7

85.4

21.4%

Net Income

15.0

16.9

-11.2%

53.3

52.3

1.9%

18

1)

Of our 359,000 and 309,000 subscribers at September 29, 2009 and September 29, 2008, respectively, 5.6% and

3.2% maintained a suspended account.

Iridium Holdings LLC

Operational EBITDA Non-GAAP reconciliation

19

Q309

Q308

YTD09

YTD08

($ in Millions)

Net income

$              

15.0

$               16.9

$               53.3

$               52.3

Interest expense

3.6

4.6

12.8

14.3

Interest income

(0.2)

(0.3)

(0.3)

(1.0)

Depreciation and amortization

3.6

3.1

10.8

9.0

Stock-based compensation

expenses

4.4

0.9

5.4

2.1

Non-recurring transaction

expenses

10.6

1.8

12.5

2.4

Iridium NEXT expenses, net

1.4

2.9

9.2

6.3

Operational EBITDA

$                38.4

$              29.9

$            103.7

$              85.4

Iridium Communications Inc. 

Unaudited Condensed Consolidated Statements of Operations

20

2009

2008

2009

2008

Operating expenses:

Professional fees

$    5,725

$       28

$   6,244

$    104

Other operating expenses

372

78

645

196

Total operating expenses

6,097

106

6,889

300

Change in fair value of warrants

(34,117)

—

(34,117)

—

Other income -

interest

157

1,943

979

4,936

(Loss) earnings before provision (benefit) for

(40,057)

1,837

(40,027)

4,636

Income tax (benefit) provision

(629)

740

(616)

2,088

Net (loss) income

$(39,428)

$  1,097

$(39,411)

$ 2,548

Weighted

average

shares

outstanding

-

basic

48,929

48,500

48,645

41,512

Weighted

average

shares

outstanding

-

diluted

48,929

48,500

48,645

41,512

(Loss) earnings per share -

basic

$    (0.81)

$    0.02

$   (0.81)

$   0.06

(Loss) earnings per share -

diluted

$    (0.81)

$    0.02

$   (0.81)

$   0.06

Nine Months Ended

September 30,

Three Months Ended

September 30,