RigNet amends credit facility; revolver increased to $100 million

By Wendy Van Sickle

Columbus, Ohio, Feb. 24 – RigNet, Inc. amended its senior secured credit facility with its existing bank group led by Bank of America, NA as administrative agent, increasing its revolver by $15 million to $100 million and extending its maturity to Aug. 31, 2022, among other things, according to a news release.

The amendment also replaces outstanding term notes by transferring $14.5 million to the revolver and establishes a new $16 million term facility that matures March 31, 2022.

Additionally, the maximum consolidated leverage ratio was set at 3.25 times through the third quarter of 2020, then stepping down to 3 times through second quarter 2021 and thereafter to 2.75 times.

Also a $30 million accordion feature was established by the amendment.

The pricing grid did not change.

“We are very pleased by and appreciative of the unanimous support we received from our bank group in amending our credit facility to not only extend the term, but improve cash flow by reducing amortization and providing a payment holiday in this first quarter,” Lee M. Ahlstrom, RigNet’s senior vice president and chief financial officer, said in the release.

“In this challenging economic environment, made more uncertain by the recent impact of coronavirus on potential global energy demand, the amendment facilitates RigNet’s ongoing mission to help our customers digitally transform their businesses.”

The bank group also includes BBVA USA, First Horizon (formerly First Tennessee), and Woodforest National Bank.

RigNet is a Houston-based network infrastructure provider serving the remote communications needs of the oil and gas industry.

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