Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

As previously reported, on October 4, 2010, we entered into a COFACE Facility Agreement with a syndicate of bank lenders, which we amended and restated on August 1, 2012 (the "Facility"), which provides for borrowings up to $1.8 billion to fund (i) 85% of the costs of the construction of the satellites for our next-generation satellite constellation, Iridium NEXT, (ii) premiums for the COFACE insurance of 95% of the principal and interest under the Facility, and
(iii) a substantial portion of the interest under the Facility during the construction and launch phase of Iridium NEXT. The Facility is comprised of two tranches:

• Tranche A - $1,537,500,000 at a fixed rate of 4.96%; and

• Tranche B - $262,500,000 at a floating rate equal to the London Interbank Offer Rate ("LIBOR") plus 1.95%.

As previously disclosed, we also pay a commitment fee of 0.80% per year, in semi-annual installments, on the undrawn portion of the Facility. Scheduled semi-annual principal repayments will begin six months after the earlier of
(i) the launch of a specified number of satellites or (ii) September 30, 2017, and the Facility will mature seven years after the first repayment date. Our obligations under the Facility are secured on a senior basis by a lien on substantially all of our assets. The Facility contains standard representations, conditions precedent to drawing of funds, events of default, acceleration provisions and covenants, including financial performance covenants.

In a series of borrowings under the Facility from November 5 through December 20, 2012, we borrowed an aggregate of approximately $152.9 million, bringing our total outstanding borrowings under the Facility to approximately $751.8 million as of the date of this filing.

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