DigitalGlobe sets Friday pricing for $500 million eight-year notes

By Paul A. Harris

Portland, Ore., Jan. 22 - DigitalGlobe, Inc. expects to price a $500 million offering of eight-year senior notes on Friday, according to a syndicate source.

The deal is in the market via joint bookrunners Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Bank of Tokyo-Mitsubishi UFJ Ltd. and Citigroup Global Markets Inc., as well as co-managers Barclays and Raymond James.

The Rule 144A with registration rights notes come with four years of call protection.

The company is also putting in place a $700 million senior secured credit facility.

Proceeds from the debt financing, together with cash on hand, will be used to fund the cash portion of DigitalGlobe's merger with GeoEye, Inc., as well as to refinance debt under DigitalGlobe's existing credit facility, and to fund the discharge and redemption of all of GeoEye's outstanding 9 5/8% senior secured notes due 2015 and its 8 5/8% senior secured notes due 2016.

DigitalGlobe is a Longmont, Colo.-based provider of commercial high-resolution earth imagery products and services.

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