Company: IRDM
Filing Date: 2025-04-22
Form Type: 10-Q
Source: 0001628280-25-018712
Chunk: 32

Company: Iridium Communications Inc.
Filing Date: 2025-04-22
Form: 10-Q
Item: Part I, Item 8
Chunk 32
---
 period. The $10.8 million improvement in net income was primarily the result of the increases in service and engineering and support services revenues, as described above.

Liquidity and Capital Resources

Our primary sources of liquidity are cash provided by operations, cash and cash equivalents and our Revolving Facility. These sources are expected to meet our short-term and long-term liquidity needs, including payments for (i) required principal and interest on the Term Loan, which we expect to be $28.6 million of principal, inclusive of the mandatory excess cash flow prepayment in 2025, and based on the current interest rate, approximately $95.0 million in interest, (ii) capital expenditures of approximately $90.0 million in 2025, which we expect to moderate through the end of the decade, (iii) working capital, (iv) potential share repurchases, and (v) anticipated cash dividend payments to holders of our common stock.

As of March 31, 2025, our total cash and cash equivalents balance was $50.9 million, down from $93.5 million as of December 31, 2024. While we borrowed $20.0 million under the Revolving Facility during the three months ended March 31, 2025, and generated cash flows from operations, we used cash of $70.5 million to repurchase shares of our common stock, $15.7 million to pay dividends, and $24.5 million for capital expenditures.

Term Loan and Revolving Facility

Pursuant to a credit agreement, as amended and restated to date, or the Credit Agreement, we previously entered into a term loan totaling $1,500.0 million, or the Term Loan, issued at a price equal to 99.75%, and an accompanying $100.0 million revolving loan, or the Revolving Facility. The maturity date of the Term Loan is in September 2030. We borrowed an additional $125.0 million under the Term Loan in March 2024 and $200.0 million in July 2024. The additional amounts borrowed are fungible with the original $1,500.0 million, and have the same maturity date, interest rate and other terms. The additional $125.0 million was issued at a price equal to 99.875% of its face value, while the additional $200.0 million was issued at a price equal to 99.0% of its face value. 

The