Earth observation operator DigitalGlobe is seeking to raise approximately US$600m in a senior secured debt financing in order to fund the repurchase of its US$355m outstanding of 10.5% senior secured notes due 2014.
The new facilities will consist of a…
Earth observation operator DigitalGlobe is seeking to raise approximately US$600m in a senior secured debt financing in order to fund the repurchase of its US$355m outstanding of 10.5% senior secured notes due 2014.
The new facilities will consist of a term loan of up to US$500m and a revolving credit facility of up to US$100m. SatelliteFinance understands that terms on the loans are still to be decided and that JP Morgan and Morgan Stanley are the lead arrangers on the deal.
DigitalGlobe expects to complete the debt financing in conjunction with the completion of the tender offer. The early consent payment deadline is 4 October 2011, with the tender offer scheduled to expire on 19 October. The closing of the debt transaction is anticipated to fall somewhere between those two date.
The remaining proceeds from the new facilities after the bond repurchase programme are to be used for general corporate purposes, including stock repurchases and acquisitions.
The refinancing is likely to be DigitalGlobe’s last of the year, with the company having no other debt on its books.