5 May 2016 07:00
Amendment to Cooperation Agreement between Inmarsat and Ligado Networks
On 1 April, Inmarsat (LSE: ISAT.L) announced that Ligado Networks had elected the 30MHz option (the "30MHz Plan") under the Cooperation Agreement between the two companies. Since that date, the parties have discussed in detail the nature and timing of transition to the 30MHz Plan and have agreed today to an amendment that significantly benefits both parties.
In exchange for deferral of some payments from Ligado to Inmarsat, the parties have agreed to delay the transition to the 30MHz Plan and Ligado has provided Inmarsat enhanced spectrum usage rights for its satellite operations for a minimum period of two years. Ligado's satellite operations will also continue without interruption or change.
Ligado will make aggregate payments of approximately $108m, $111m and $118m to Inmarsat in respect of 2016, 2017 and 2018 respectively, payable in quarterly instalments. Over that period, up to approximately $35m of additional contracted payments will be deferred. In 2019, Inmarsat has granted Ligado a full payment deferral in an aggregate amount of up to approximately $132m. All deferred amounts will be increased by agreed amounts and repayable on 30 June 2021 or earlier in certain circumstances. Payment deferrals will stop from the date of FCC approval of Ligado's spectrum for terrestrial use. From 1 January 2020, no further payments will be deferred and quarterly payments will recommence at the level of approximately $136m per annum, escalating at 3% per annum, in accordance with the existing terms of the Cooperation Agreement.
For further information please contact:
Investor enquiries Media enquiries
Morten Singleton Chris McLaughlin/Jonathan Sinnatt
Tel: +44 (0)20 7728 1518 Tel: +44 (0)20 7728 1935
morten.singleton@inmarsat.com press@inmarsat.com
About Inmarsat
Inmarsat plc is the leading provider of global mobile satellite communications services. Since 1979, Inmarsat has been providing reliable voice and high-speed data communications to governments, enterprises and other organizations, with a range of services that can be used on land, at sea or in the air. Inmarsat employs around 1,600 staff in more than 60 locations around the world, with a presence in the major ports and centres of commerce on every continent. Inmarsat is listed on the London Stock Exchange (LSE: ISAT.L). For more information, please visit http://www.inmarsat.com/
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About Ligado
LIGADO NETWORKS provides mobile connectivity throughout North America over a next-generation satellite system. For two decades, Ligado has provided its partners in federal, state and local government as well as in public safety and transportation industries with reliable and pervasive mission critical connectivity for emergency response, remote monitoring and asset tracking activities. As demand grows for new mobile Internet of Things (IoT) devices, Ligado and its partners are working to develop a hybrid satellite-terrestrial network to deliver ultra-reliable and highly-secure connections. Ligado Networks is headquartered in Reston, Virginia.