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RigNet gets $125 million revolver, $60 million term loan due 2018
By Angela McDaniels
Tacoma, Wash., Oct. 4 - RigNet, Inc. entered into an amended and restated credit agreement on Thursday that provides for a $60 million term loan facility and a $125 million revolving credit facility, according to an 8-K filed Friday with the Securities and Exchange Commission.
Both facilities mature October 2018.
The initial interest rate is Libor plus 175 basis points. The margin over Libor ranges from 150 bps to 250 bps depending on the company's leverage ratio.
The initial commitment fee is 25 bps. It ranges from 25 bps to 35 bps.
Bank of America Merrill Lynch is the arranger and book manager. Bank of America, NA is the administrative agent. Compass Bank is the syndication agent. Wells Fargo Bank, NA is the documentation agent.
The revolver includes a $15 million sublimit for standby letters of credit.
The revolver is no longer subject to a borrowing base calculation.
The company had $54.6 million of term loans outstanding immediately prior to the amendment and restatement and $60 million outstanding immediately after.
The term loan facility requires amortization payments of $2.14 million per quarter from March 2014 through October 2018.
The credit agreement contains covenants that restrict, among other things, the company's ability to obtain additional debt financing and to pay cash dividends. Under the financial covenants, the company must not let its consolidated leverage ratio exceed 3.0 to 1.0, which steps down to 2.5 to 1.0 after June 30, 2015, or let its consolidated fixed-charge ratio be less than 1.25 to 1.00.
The loans under the credit agreement are secured by substantially all of the assets of the company and its domestic subsidiaries.
RigNet is a Houston-based network infrastructure provider serving the remote communications needs of the oil and gas industry.
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