Space Systems/Loral has secured an amendment to its senior secured revolving credit facility, upping its size to US$150m.
The new facility matures on January 24, 2014, and includes a US$50m letter of credit sublimit and a US$10m sublimit for swingline…
Space Systems/Loral has secured an amendment to its senior secured revolving credit facility, upping its size to US$150m.
The new facility matures on January 24, 2014, and includes a US$50m letter of credit sublimit and a US$10m sublimit for swingline loans, which enable SS/L immediate access to a large sum of cash on very short notice.
The previous revolver was worth US$100m, although it had an option, subject to certain conditions, to increase the available commitment to US$25m. While both facilities are secured against SS/L’s assets, under the amended facility parent company Loral has not guaranteed SS/L’s obligations.
This move is connected to Loral’s plans to sell or spin off its subsidiary.
Indeed, the new facility contains several provisions designed to facilitate the separation of SS/L from Loral in the event of a strategic transaction involving the latter’s interest in Telesat Canada. Under the amended terms, neither a spin off, sale, nor potential initial public offering would constitute an event of default.
The lending banks are Credit Suisse (the documentation agent, joint lead arranger and joint bookrunner), JP Morgan Securities (JLA and joint bookrunner) and ING (the syndication agent). JP Morgan Chase was the administrative agent for the lenders.
