Satellite broadcaster DirecTV has agreed new revolving credit facility agreements worth a total US$3bn.
The company secured a US$1bn revolver due in February 2016, and a US$1.5bn five-year revolver due in September 2017. The agreements also enable an…
Satellite broadcaster DirecTV has agreed new revolving credit facility agreements worth a total US$3bn.
The company secured a US$1bn revolver due in February 2016, and a US$1.5bn five-year revolver due in September 2017. The agreements also enable an incremental increase in the aggregate commitments of up to US$500m between the 3.5-year and the five-year revolvers.
Citibank is administrative agent, Barclays is syndication agent, and Credit Suisse, JP Morgan, BofA Merrill Lynch, RBS and UBS are co-documentation agents. Joint lead arrangers and joint bookrunners are Citigroup, Barclays, Credit Suisse, JP Morgan, BofA Merrill Lynch, RBS and UBS.
Currently, both revolvers bear interest at either the Eurocurrency rate plus 1.25% per annum, or a fluctuating rate.
They will replace a credit agreement dated 7 February 2011, and will be unsecured senior obligations of DirecTV Holdings, an indirect wholly-owned subsidiary of DirecTV.
In addition, the new credit agreement requires DirecTV Holdings to comply with a financial covenant that obliges the group, and its subsidiaries, to not have a leverage ratio of greater than 5:1 on the last day of any future fiscal quarter.
The company said in an SEC filing that both revolvers were currently undrawn and that they could be used for general corporate purposes, which may include a distribution to DirecTV for share repurchases.
