Satellite broadband operator ViaSat has agreed to a new US$500m revolving credit facility with a syndicate of banks led by Union Bank.
The facility refinances and replaces the company’s previous revolver, the US$325m fifth amended and restated…
Satellite broadband operator ViaSat has agreed to a new US$500m revolving credit facility with a syndicate of banks led by Union Bank.
The facility refinances and replaces the company’s previous revolver, the US$325m fifth amended and restated revolving loan agreement that was secured on 9 May 2012.
The new revolver, which includes up to US$150m of letters of credit, has much the same terms as the last one with covenants regarding a maximum total leverage ratio and a minimum interest coverage ratio, and one that restricts ViaSat’s ability to buy and sell assets and pay dividends.
Borrowings under the facility will bear interest at the highest of the Federal Funds rate plus 0.50%, the Eurodollar rate plus 1.00% or the administrative agent’s prime rate.
Union Bank (the administrative and collateral agent), Merrill Lynch and JP Morgan were joint lead arrangers and joint book runners on the transaction.
ViaSat recently revealed a strong set of figures in its Q1 fiscal 2014 results, announcing a 33% year-on-year rise in revenues to US$321.1m and 78% increase in EBITDA to US$52.7m. The company added that at the end of the quarter it has US$67m in cash on hand and had drawn down just US$35m of the US$325m 2012 revolver.
