Viasat Inc. said March 19 that it plans to sell $500 million in senior secured notes due 2027 through a private placement.
Viasat (Nasdaq: VSAT) said it plans to use the funds to repay all of its outstanding borrowings under its existing revolving credit facility and for general corporate purposes. The latter may include financing costs related to the purchase, launch and operation of satellites, potential acquisitions, joint ventures and strategic alliances, working capital or capital expenditures. The corporation also said it expects to reduce available commitments under its revolving credit facility from $800 million to $700 million.
The Carlsbad-based company offers satellite equipment and services to a variety of customers, including governments, airlines and individuals.
Viasat plans to negotiate the interest rate on the notes with its initial buyers, which will be institutions.
In a statement, Viasat said the notes will be secured on a first-priority basis, equally and ratably with the indebtedness under Viasat’s existing revolving credit facility, by liens on substantially all of Viasat’s assets, and will be guaranteed on a senior secured basis by any and all of Viasat’s domestic restricted subsidiaries that in the future guarantee the revolving credit facility.
