The US-based satellite services provider Globecomm has refinanced its committed credit facility with Citibank.
The company has upped the size of the facility from US$50m to US$65m, with the loan portion of the facility increased from US$25m to US$40m….
The US-based satellite services provider Globecomm has refinanced its committed credit facility with Citibank.
The company has upped the size of the facility from US$50m to US$65m, with the loan portion of the facility increased from US$25m to US$40m. The facility has been renewed until May 26, 2011 and accommodates term loans, standby letters of credit, foreign exchange transactions and a revolving credit facility.
Globecomm stated that the credit facility will be used to issue bid bonds and performance bonds relating to projects and contracts worldwide, term loans for potential acquisitions, and for its working capital needs.
Andy Melfi, chief financial officer of Globecomm said: “As the company grows and pursues acquisitions, Citibank continues to provide a stable source of liquidity, as well as significant expertise and resources in global financial markets.”
Globecomm recently completed a dual acquisition, snapping up Dutch company Carrier to Carrier Telecom (C2C) and the South African unit Evolution Communication Ltd (Evocomm), which was owned by C2C’s parent company.
To fund the acquisition, Globecomm used US$2.5m in cash and US$12.5m from its existing credit facility with Citibank. Under the terms of the transaction, C2C Holdings could receive a further sum of up to US$10.9m based on earnings milestones over the next two years.