Inmarsat trims term B to $2 billion, ups spread to Libor plus 450 bps

By Sara Rosenberg

New York, Sept. 20 – Inmarsat plc downsized its seven-year term loan B to $2 billion from $2.7 billion and increased pricing to Libor plus 450 basis points from talk in the range of Libor plus 400 bps to 425 bps, according to a market source.

Also, the original issue discount talk on the term loan was revised to a range of 98 to 99 from just 99 and changes were made to documentation, the source said.

The term loan still has a 0% Libor floor.

The company’s now $2.7 billion of credit facilities, down from $3.4 billion, also include a $700 million revolver.

Barclays, BofA Securities Inc. and UBS Investment Bank are the lead arrangers on the deal.

Commitments were scheduled to be due at 4 p.m. ET on Friday, extended from noon ET on Friday, the source added.

Proceeds will be used to help fund the buyout of the company by Apax, Warburg Pincus, Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board for $7.21 in cash per share, or about $3.4 billion.

Other funds for the transaction are expected to come from $1.825 billion of senior secured notes, upsized from $1.125 billion.

Closing is expected in the fourth quarter, subject to regulatory clearances and other conditions.

Inmarsat is a London-based satellite telecommunications company.

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