Completion of 7 year US term loan refinancing
Sydney, May 7, 2018 AEST (ABN Newswire) - Speedcast International Limited (
ASX:SDA) (7SC:FRA), the world's most trusted provider of remote communication and IT services, today announced the pricing of its US$425 million Senior Secured Credit Facility (the "Term Loan") in the US institutional Term Loan B market with participation by key global financial institutions. The Term Loan has a term of 7 years and a coupon of LIBOR + 2.50%. In addition, Speedcast has arranged a new 5-year US$100 million Senior Secured Revolving Credit Facility.
Proceeds of the new facilities will be used to refinance Speedcast's existing bank loans, which include a 3-year US$425 million Senior Secured Bank Loan and a US$20 million Senior Secured Revolving Credit Facility. The new facilities will diversify Speedcast's funding sources, extend its debt maturity profile and improve the company's operational flexibility in the future.
Credit Suisse (Left Lead), Citi, Crédit Agricole, ING and Macquarie acted as Joint Lead Arrangers and Joint Bookrunners.
"This refinancing transaction builds and broadens Speedcast's relationships with lenders, accessing a range of major financial institutions in the US Term Loan B market. It also demonstrates our disciplined approach to funding through a proactive early refinancing that increases capital flexibility at attractive terms," said Clive Cuthell, Chief Financial Officer, Speedcast.
Key terms of the Term Loan agreement follow:
Term Description Facility Size US$425 millionTerm 7 yearsCoupon LIBOR + 2.50%Early repayment At Speedcast's optionUse of Proceeds Refinance existing bank loans
About Speedcast International Ltd
Speedcast International Ltd (ASX:SDA) is the world's most trusted communications and IT services provider, delivering critical communications solutions to the Maritime, Energy, Mining, Media, Telecom, Cruise, NGO, Government, and Enterprise sectors. With more satellite capacity than any other provider, Speedcast enables faster, seamless pole-to-pole coverage from a global hybrid satellite, fiber, cellular, microwave, MPLS, and IP transport network with direct access to public cloud platforms. The company also integrates differentiated technology offerings that provide smarter ways to communicate and distribute content, manage network and remote operations, protect and secure investments, and improve the crew and guest experience. With a passionate customer focus and a strong safety culture, Speedcast serves more than 3,200 customers in over 140 countries. Learn more at www.speedcast.com.
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