Oil & gas industry communication services provider RigNet has amended its credit facilities slightly reducing the size of its secured term loan and significantly increasing its revolving credit facility.
The company has entered into a second amended and…
Oil & gas industry communication services provider RigNet has amended its credit facilities slightly reducing the size of its secured term loan and significantly increasing its revolving credit facility.
The company has entered into a second amended and restated credit agreement with Bank of America that provides for a US$60m term loan facility and US$125m revolver. Both are due to mature in October 2018 and carry an interest rate of Libor plus an applicable margin ranging from 1.5% to 2.5% depending on RigNet’s leverage ratio.
As RigNet has grown in size so has the size of the facility that relationship bank Bank of America has provided. The credit agreement was initially provided in May 2009 and has since been amended and enlarged each year. In May 2011, the company’s debt was consolidated into a single loan of US$30.1m and the following year the term loan was increased substantially to US$66.4m and a revolving facility of US$10m added.
Despite having been public since its IPO in late 2010, RigNet has proved a popular investment for the private equity community and most recently Kohlberg Kravis Roberts became the company’s largest shareholder after it purchased fellow sponsor Cubera’s 27% stake for around US$135m.
