US satellite operator ViaSat has placed US$300m in senior notes due 2020 under the same terms as the US$275m bond it issued in February.
ViaSat said the new notes were issued at a price equal to 103.5% of their face value.
The add-on carries a 6.875%…
US satellite operator ViaSat has placed US$300m in senior notes due 2020 under the same terms as the US$275m bond it issued in February.
ViaSat said the new notes were issued at a price equal to 103.5% of their face value.
The add-on carries a 6.875% coupon and will be treated as a single class with the notes issued earlier this year, which priced at par. Moody’s gave the private placement a B1 rating, and Standard & Poor’s assigned it a B+.
BofA Merrill Lynch, JP Morgan, Credit Suisse, Morgan Stanley and Wells Fargo are listed on the offering memorandum as joint book-running managers.
ViaSat plans to use the proceeds to repurchase its US$275m 8.875% senior notes due 2016 in a cash tender offer. Any remaining net proceeds will be used for general corporate purposes.
For the tender offer, the company plans to pay a total US$1,071.56 for each US$1,000 principal amount of the 2016 notes validly tendered and accepted for purchase.
BofA Merrill Lynch is acting as the lead agent for the tender offer.
In addition, ViaSat has amended the US$325m revolving credit facility it secured on 9 May 2012, with Union Bank acting as administrative agent. As well as authorising ViaSat to offer its new US$300m bond to refinance debt, this amendment has increased the company’s permitted total leverage ratio for upcoming fiscal quarters to 1.00.
Previously, this ratio stood at 3.75 for the fiscal quarter ending 28 September 2012, 4.00 for the fiscal quarter ending on 28 December 2012 and 29 March 2013, and 3.50 for the fiscal quarter ending 28 June 2013 and thereafter.
BofA Merrill Lynch, JP Morgan, Wells Fargo and Morgan Stanley arranged the revolver.
