Viasat, Inc. has priced and upgraded its offering of 600 million dollars in aggregate principal amount of 15.625 percent Senior Secured Notes that are due in 2027. The offering was upgraded from the formerly announced 500 million dollars in aggregate principal amount. These notes were first offered and then sold to the qualified institutional buyers in the U.S. pursuant to the Rule 144A and outside of the U.S. pursuant to the Regulation S under the 1933 Act of Securities, later amended as the “Securities Act”. The notes will be having a 5.625 percent interest rate per annum and will further be issued at a cost that is equal to 100 percent of their face value.
The ending of the sale of notes, depending on some customary conditions might be occurring either on or near about March 27th, 2019. These notes shall be guarded on the basis of first priority, ratably and equally in regard to the indebtedness under the existing and revolving credit facility of Viasat, through liens on significantly all of the assets of Viasat.
The net revenue from the offering that is estimated to be roughly five hundred and ninety million dollars after deducting the commissions that are estimated and offering the expenses, shall be utilized to repay all of the remarkable borrowings under its current revolving credit facility and for the general corporate purposes, that might comprise the financing costs that are related to its purchase, operation of satellites, launch, some potential acquisitions, a few joint ventures, and other strategic alliances, along with working capital or the expenditures of capital. Furthermore, the repayment of these remarkable borrowings under the current revolving credit facility, reduction of already available commitments is expected by Viasat from 800.0 million dollars to 700.0 million dollars.