MTN SeaMobile secures US$120m debt facility

SatelliteFinance understands that satellite communications provider MTN SeaMobile has netted a US$120m debt financing that will be used to refinance existing debt.
The debt is split between a US$110m six-year term loan and a US$10m six-year revolving…

SatelliteFinance understands that satellite communications provider MTN SeaMobile has netted a US$120m debt financing that will be used to refinance existing debt.

The debt is split between a US$110m six-year term loan and a US$10m six-year revolving credit facility. Jefferies was the sole arranger for the transaction.

Though MTN SeaMobile recently agreed to sell its SeaMobile Europe subsidiary to German peer Central European Telecom Services (CETel), the company is believed to be targeting a number of potential acquisitions.

It had been rumoured to be in the running for Norwegian VSAT provider Ship Equip, although that is now understood to be down to Inmarsat, Vizada and a Norwegian private equity firm, while last year it was among the bidders competing to acquire oilfield services giant Schlumberger’s Global Connectivity Services (GCS) business. That process was eventually won by Harris Corp with an offer of just under US$400m.

MTN SeaMobile is the result of the merger of SeaMobile and Maritime Telecommunications Network (MTN) in June 2006.

SeaMobile paid US$168m for its rival, which had previously been owned by private equity player Perseus.