Speedcast International Ltd Stock Market Press Releases and Company Profile
Lenders' Presentation for Globecomm Acquisition
Lenders' Presentation for Globecomm Acquisition

London, Sep 19, 2018 AEST (ABN Newswire) - Speedcast International Ltd (googlechartASX:SDA) (googlechartSPPDF:OTCMKTS) provides Lenders' presentation for Globecomm acquisition.

Transaction overview

Speedcast International Limited ("Speedcast") is seeking to raise US$175m of an incremental term loan to its existing Term Loan B facility to acquire Globecomm Systems Inc. ("Globecomm")

- Speedcast is a leading provider of end-to-end remote communications and IT solutions to a wide range of blue-chip customers globally

o Jun-18 pro-forma revenue of US$758m and Jun-18 pro-forma EBITDA of US$169m(1)

o Listed on the Australian Securities Exchange ("ASX") (googlechartASX:SDA), with an enterprise value of US$1,317m(2) (pro-forma for Globecomm)

- Track record of integrating strategic, value-accretive transactions, resulting in significant scale benefits and earnings diversification

- On 28 August 2018 Speedcast announced the acquisition of Globecomm for US$135m(3) on a cash and debt-free basis

o Highly strategic acquisition in line with Speedcast's goal to build scale and capabilities in high growth markets through consolidation

o Complementary teleport and security cleared infrastructure in the US and Europe

o Jun-18 EBITDA of US$16m and more than US$15m of annualized cost synergies (expected to be realized within 18 months post close)(4)

o Expected to close in Q4 2018

- Speedcast is seeking to raise US$175m of incremental pari passu term loan to fund the acquisition and repay a portion of its revolver

o Results in a net leverage ratio of 3.4x Jun-18 pro-forma EBITDA(5)

(1) Pro-forma Jun-18 EBITDA includes full year contribution from Globecomm (including run-rate cost synergies), UltiSat (acquired in Nov-2017) and Harris CapRock run-rate synergies.

(2) Market data as at 14 September 2018. Pro-forma net debt as at 30 June 2018 of US$572m. Market capitalization of US$745m converted at spot rate of 0.7201 AUD/USD.

(3) Estimated purchase consideration including closing adjustments and net of US$10m proceeds from the sale and leaseback of Globecomm headquarters.

(4) Globecomm EBITDA and synergies as per Speedcast's 1H18 results presentation.

(5) Pro-forma for Globecomm cost synergies (expected to be realized within 18 months post close).

To view the full presentation, please visit:
http://abnnewswire.net/lnk/UWMPQ148


About Speedcast International Ltd

Speedcast InternationalSpeedcast 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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Contact

Toni Lee Rudnicki
Vice President, Global Marketing
Speedcast International Ltd
E: tonilee.rudnicki@speedcast.com
T: +1-832-668-2634



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