Viasat gets $2.3 billion debt facilities commitment for Inmarsat buy

By Sara Rosenberg

New York, Nov. 8 – Viasat Inc. has received a commitment for $2.3 billion of new debt facilities to help fund its acquisition of Inmarsat, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Under the agreement, Inmarsat is being purchased for $850 million in cash and about 46.36 million shares of Viasat common stock valued at $3.1 billion based on the closing price on Nov. 5.

With the transaction, the company plans to assume $2.1 billion in principal amount of Inmarsat senior secured bonds and $1.7 billion outstanding under Inmarsat’s $2.4 billion senior secured credit facilities.

In addition to the new debt facilities, Viasat has obtained commitments of $3.2 billion to backstop certain amendments required under its $700 million revolving credit facility, $88.4 million outstanding under its Ex-Im credit facility, and Inmarsat’s $2.4 billion senior secured credit facilities.

Assuming closing occurs during the second half of calendar year 2022, Viasat’s pro forma net leverage ratio at Dec. 31, 2022 is projected to be about 5x LTM adjusted EBITDA and is expected to decline to less than 4x within 24 months thereafter.

Closing is subject to the approval of Viasat stockholders, the receipt of certain regulatory approvals and other customary conditions.

Viasat is a Carlsbad, Calif.-based communications company. Inmarsat is a London-based provider of global mobile satellite communications services.

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