Moody's rates Inmarsat add-on B2

Moody's Investors Service said it assigned a prospective B2 rating to the proposed $105 million add-on issuance of Inmarsat Finance plc.

Concurrently, Moody's affirmed all existing ratings of Inmarsat Group Ltd., including the Ba3 senior implied rating and B3 senior unsecured issuer rating, as well as Inmarsat Investments Ltd.'s Ba3 rated $975 million senior secured bank facility and Inmarsat Finance plc's B2 rated $375 million senior notes due 2012.

Proceeds from the $105 million issuance will be used to repay subordinated shareholder funding ($95 million in principal and $5 million in interest) and provide for fees and expenses associated with the transaction ($5 million).

The rating affirmation reflects Moody's view that the increased leverage levels (resulting from the proposed offering) remain appropriate for the company's ratings which already incorporated the likelihood of a $100 million shareholders distribution (given the allowance provided for such a transaction in the company's bond indenture). Moody's had previously noted that the bond indenture's restricted payment test allows for a $100 million carveout that can be used to pay down outstanding balances on the company's shareholder loan instruments.

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