US satellite operator ViaSat has priced US$275m worth of 6.875% senior unsecured notes due 2020 to refinance existing debt.
The company expects to close the bond, which will be offered at an equal price to 100% of its face value, on 27…
US satellite operator ViaSat has priced US$275m worth of 6.875% senior unsecured notes due 2020 to refinance existing debt.
The company expects to close the bond, which will be offered at an equal price to 100% of its face value, on 27 February.
According to a statement on 22 February, the proceeds will “be used to repay outstanding borrowings under ViaSat’s credit facility and for general corporate purposes, which may include financing costs related to the purchase, launch and operation of additional satellites or satellite capacity, potential acquisitions, funding subscriber acquisition costs, working capital or capital expenditures”.
Meanwhile, ViaSat is suing manufacturer Space Systems Loral (SS/L) over allegations that it infringed patents and breached non-disclosure obligations.
ViaSat is seeking, among other things, damages in amounts to be determined in court, and measures to prevent further acts of the alleged infringement and breaches.
The two companies had attempted to resolve the matter without court action, but ViaSat announced on 21 February that these negotiations had not been successful.
“We believe our complaint clearly establishes our position regarding ownership of the underlying intellectual property as well as SS/L’s infringement of our patents and its breach of contract,” said ViaSat COO Rick Baldridge.
“We have been clear with SS/L that any settlement discussions would need to progress expeditiously given the high stakes involved and the fact that we put SS/L on notice of these issues long ago. Unfortunately, those discussions didn’t progress at all, so we are moving forward with the litigation.”
In an earlier SEC filing, SS/L said it had “meritorious defences and counterclaims” to ViaSat’s claims.
“SS/L believes that its conduct was consistent with, and in due regard for, any applicable and valid intellectual property rights of ViaSat,” stated the company.
Further details of the dispute were not disclosed, but they likely centre on SS/L’s role in building high-throughput Ka-band satellites for both ViaSat and its broadband competitor Hughes.
ViaSat’s bird, ViaSat-1, was ordered first and launched last October to become what it claims is the world’s highest capacity communications satellite. Prior to this bird, the company had provided satellite broadband services to consumers via its Wildblue subsidiary, offering speeds of up to 1.5 Mpbs. However, ViaSat-1 promises data download speeds at up to 12 Mbps, which is a level of service similar to that provided via DSL connections.
But Hughes’ upcoming Jupiter spacecraft, which is scheduled to launch later this year, could offer comparable services across the US.
ViaSat, which was unable to comment before the press deadline, has previously pointed to certain similarities between the two satellites.
Before ViaSat announced it was proceeding with legal action, SS/L CEO Michael Targoff told SatelliteFinance on 6 February that he was optimistic about resolving the matter quickly.
“We do not anticipate this issue having any material adverse effect on SS/L’s financial position or future operations,” he said.
