CARLSBAD – Viasat Inc. (Nasdaq: VSAT) announced on Wednesday (Sept. 11) that it had priced and sold $1.975 billion of bonds – up from the $1.250 billion announced two days earlier.
The bonds are 9% senior secured notes due 2029. Viasat said it expects the sale to close on or about Sept. 25.
The company said it plans to use the net proceeds from the offering, together with cash on hand, to redeem its outstanding 6.750% senior secured notes due 2026 (also known as Inmarsat 2026 Notes) and to pay related fees and expenses.
In a securities filing from Sept. 9, Viasat said that between June 30 and Sept. 9, the company has repurchased $50.5 million aggregate principal amount of Viasat’s outstanding 5.625% Senior Notes due 2025. In addition, it has caused the issuers to repurchase $101.7 million aggregate principal amount of Inmarsat 2026 Notes. Viasat said it may continue to repurchase and cause the issuers to repurchase up to an additional aggregate amount of $300 million of 2025 Notes and Inmarsat 2026 Notes, as applicable. Viasat said it intends to focus on its earlier maturities.
Co. Grows Azul Business; Hapag-Lloyd Tests Cloud Service
In news related to in-flight internet service, Viasat announced expanded service with the Brazilian air carrier Azul. Specifically, seven aircraft in Azul’s new Airbus A330-900neo fleet will be equipped with Viasat’s Ka-band in-flight internet connectivity solution. The first aircraft is scheduled to enter service next year. Viasat has provided internet service to Azul aircraft since 2021.
Separately, Inmarsat Maritime, now part of Viasat, announced that global container liner shipping group Hapag-Lloyd is among the first to trial NexusWave, a fully managed service that delivers what the company describes as “an unparalleled global service orchestrated by bringing together a multi-orbit, multi-band set of connectivity networks as a single network solution.”
A series of owner-operator trials aims to verify the way reliable high-speed Internet connections allow critical enterprise/IT functions to move to the cloud instead of maintaining them on vessels, so that shipboard personnel can align with office-based colleagues. In essence, the company said, the service can transform ships into “floating offices.”
Viasat Inc.
FOUNDED: 1986
CEO: Mark Dankberg
HEADQUARTERS: Carlsbad
BUSINESS: Broadband services and technologies company
REVENEUE: $4.28 billion in fiscal 2024
STOCK: VSAT (Nasdaq)
WEBSITE: viasat.com
CONTACT: 760-476-2200
NOTABLE: In May 2023, Viasat closed its acquisition of London-based Inmarsat, a deal originally announced in late 2021
