GHL Acquisition Corp. (AMEX: GHQ), a SPAC and affiliate of Greenhill & Co. Inc. (NYSE: GHL), is going to be rolling up an interesting operation. It is acquiring the old global satellite phone company Iridium Holdings LLC. The company will provide a $500 million cash infusion whichwill allow Iridium to finance its new finance system. It will valueIridium at roughly $591 million depending upon your calculations andthe final closing terms.
Greenhill owns roughly 17.5% of GHL Acquisition. It will make a cashinfusion to help fund the deal. Iridium’s current holderswill receive roughly $100 million in cash and 36 millionshares of the combined operation. GHL will ultimately have about a 55% controlling interest in the company.
Iridium has more than 300,000 global wireless satellite voice and datacustomers. This isn’t its first pony ride as a public company. Thisused to trade as Iridium under various tickers on NASDAQ asits status changed and changed before its ultimate bankruptcy.
We have followed this company along with competitor Globalstar Inc.(NASDAQ: GSAT). Unfortunately, it has been a horrible post-IPO performance sincetrading above $15.00 in late 2006. Iridium now trades as a $2.00+ stock. It has been on our "IPO-Watchlist" of private companies whichmay need to come public to fund further growth. Skyterra Communications(OTCBB-SKYT) and Inmarsat plc (London-traded) are also in this space.
You can see the full details on the Iridium page provided here.
Jon C. Ogg
September 23, 2008
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