[Satellite TODAY 06-03-10] Iridium Communications awarded a fixed-price contract to Thales Alenia Space for the design and construction of satellites for the Iridium Next constellation, Iridium announced June 2.
    Thales Alenia Space will build 72 operational satellites and in-orbit spares for Iridium Next with an additional nine ground spares to provide greater risk mitigation. The MSS operator also entered into an authorization to proceed with Thales Alenia Space, which allows the manufacturer to immediately commence work on the development of satellites prior to completion of the financing.
    The deal will be financed by French export credit agency Coface, which has provided Iridium with a commitment to cover 95 percent of the $1.8 billion credit facility for the project. The Coface guarantee is being syndicated through French and other major international banks and financial institutions and is not conditioned on Iridium raising any further debt or equity financing. Iridium expects financing to be completed this summer.
    In a statement, Iridium CEO Matt Desch said the financing structure it secured with Coface exceeded the company’s expectations. “In addition, the Coface guarantee enables Iridium to secure attractive and flexible low cost financing for the project. Based on the amount of this guarantee, we expect Iridium Next to be fully funded when the financing is finalized this summer. This is a critical step in maintaining our customers’ and partners’ confidence that Iridium will keep delivering innovative products and services globally through the coming decades.”
    Thales Alenia Space CEO Reynald Seznec said his company would form partnerships with a consortium of international technical partners to cover the large-scale mission. “We expect 40 percent of the work for Iridium Next to be subcontracted to North America companies,” Seznec said in a statement.
    Iridium expects the total cost of the Next constellation’s development, manufacture and launch to be approximately $2.9 billion. The first constellation satellites are scheduled for launch in the first quarter of 2015.