Viasat Announces Upsizing and Pricing of $1,975 Million of Senior Secured Notes
Rhea-AI Summary
Viasat's subsidiaries, Connect Finco SARL and Connect U.S. Finco , have upsized and priced an offering of $1,975 million in 9.000% Senior Secured Notes due 2029. This is an increase from the previously announced $1,250 million. The notes will be issued at 100.00% of face value and are expected to close on September 25, 2024. They will be secured on a first-lien basis by assets also securing the Issuers' existing senior secured credit facilities.
The net proceeds, along with cash on hand, will be used to redeem all outstanding 6.750% Senior Secured Notes due 2026 and pay related fees. The notes are being offered to qualified institutional buyers in the U.S. and outside the U.S. under Rule 144A and Regulation S, respectively, of the Securities Act of 1933.
Positive
- Successful upsizing of the note offering from $1,250 million to $1,975 million
- Secured first-lien basis for the new notes, enhancing their attractiveness to investors
- Refinancing of existing 6.750% Senior Secured Notes due 2026 with new 9.000% notes
Negative
- Higher interest rate of 9.000% on new notes compared to 6.750% on existing notes
- Increased debt load with the upsized offering of $1,975 million
News Market Reaction – VSAT
In the trading session that priced this news, VSAT gained 1.01%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
The notes were offered and sold to persons reasonably believed to be qualified institutional buyers in
The closing of the sale of the notes, which is subject to customary conditions, is expected to occur on or about September 25, 2024. 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 net proceeds from the offering together with cash on hand, are expected to be used to redeem all of the Issuers' outstanding
The notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in
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 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.
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SOURCE Viasat, Inc.