Viasat Announces Proposed Private Placement of $1,250 Million of Senior Secured Notes

Rhea-AI Summary

Viasat's subsidiaries, Connect Finco SARL and Connect U.S. Finco , plan to offer $1,250 million in Senior Secured Notes due 2029. The notes will be sold privately to qualified institutional buyers in the U.S. under Rule 144A and internationally under Regulation S. They will be secured by first-lien assets also securing the Issuers' existing senior secured credit facilities. The net proceeds, along with cash on hand, will be used to redeem a portion of the Issuers' outstanding 6.750% Senior Secured Notes due 2026 and cover related expenses. This offering is subject to market conditions and does not constitute a redemption notice for the 2026 Notes. The new notes are not registered under the Securities Act and cannot be sold in the U.S. without registration or exemption.

Positive

• Raising $1,250 million through Senior Secured Notes offering
• Potential reduction of interest expenses by redeeming higher-interest 2026 Notes
• First-lien security on assets, providing strong collateral for the new notes

Negative

• Increase in long-term debt obligations
• Potential dilution of existing debt holders' claims on assets

News Market Reaction – VSAT

-6.50%

1 alert

-6.50% News Effect

On the day this news was published, VSAT declined 6.50%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

CARLSBAD, Calif., Sept. 9, 2024 /PRNewswire/ -- Viasat, Inc. (Nasdaq: VSAT) announces that its wholly-owned indirect subsidiaries, Connect Finco SARL and Connect U.S. Finco LLC (together, the "Issuers"), intend to commence an offering of $1,250 million in aggregate principal amount of Senior Secured Notes due 2029 (the "notes"), subject to market and other conditions. The Issuers are wholly-owned indirect subsidiaries of Connect Bidco Limited ("Inmarsat"), a wholly-owned indirect subsidiary of Viasat.

The notes will be offered and sold to persons reasonably believed to be qualified institutional buyers in the United States through a private placement pursuant to Rule 144A and outside the United States pursuant to Regulation S under the Securities Act of 1933, as amended (the "Securities Act"). The notes and the related guarantees will be secured on a first-lien basis by assets that also secure on a first-lien basis the indebtedness under the Issuers' existing senior secured credit facilities.

The Issuers intend to use the net proceeds from the offering, together with cash on hand, to redeem a portion of the Issuers' outstanding 6.750% Senior Secured Notes due 2026 (the "Inmarsat 2026 Notes") and to pay related fees and expenses. The foregoing does not constitute a notice of redemption with respect to the Inmarsat 2026 Notes.

The notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act. This press release is neither an offer to sell nor the solicitation of an offer to buy the notes or any other securities, and no offer, solicitation or sale will be made in any jurisdiction in which, or to any persons to whom, such an offer, solicitation or sale is unlawful. Any offers of the notes will be made only by means of a private offering memorandum. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

Safe Harbor Statement

This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements include, among others, statements regarding the proposed offering, the use of proceeds therefrom and the redemption of the 2026 Inmarsat Notes in connection therewith, and are generally identified with words such as "believe," "could," "expect," "intend," "may," "plan," "will" and similar expressions. Such statements reflect management's current expectations and judgment as of the date of this press release. Factors that could affect Viasat's forward-looking statements include, among other things, risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions related to the offering. In addition, please refer to the risk factors contained in Viasat's SEC filings available at www.sec.gov, including Viasat's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. Viasat undertakes no obligation to update or revise any forward-looking statements for any reason.

View original content:https://www.prnewswire.com/news-releases/viasat-announces-proposed-private-placement-of-1-250-million-of-senior-secured-notes-302241949.html

SOURCE Viasat, Inc.

FAQ

What is the purpose of Viasat's $1,250 million Senior Secured Notes offering?

Viasat's subsidiaries are offering $1,250 million in Senior Secured Notes due 2029 to redeem a portion of their outstanding 6.750% Senior Secured Notes due 2026 and pay related fees and expenses.

How will Viasat's new Senior Secured Notes be secured?

The new notes will be secured on a first-lien basis by assets that also secure the Issuers' existing senior secured credit facilities.

Who can purchase Viasat's new Senior Secured Notes?

The notes will be offered and sold to qualified institutional buyers in the United States through a private placement under Rule 144A and to non-U.S. persons under Regulation S.

Are Viasat's new Senior Secured Notes registered under the Securities Act?

No, the notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States without registration or an applicable exemption.