Moody's gives Speedcast loans Ba3, B3

Moody's Investors Service said it gave Speedcast Holdings III LLC ratings consisting of a B3 corporate family rating, B3-PD probability of default rating, Ba3 rating to its senior secured super priority revolving credit facility and B3 rating to the senior secured term loan.

Speedcast emerged debt free from Chapter 11 bankruptcy protection on March 21 under Centerbridge Partners LP’s ownership. On Feb. 4, Speedcast closed a new $300 million term loan.

It used the loan and balance sheet cash to fund a $327 million distribution to shareholders. The company also put in a place a new $50 million revolving credit facility.

The B3 rating reflects the company’s weak track record, small scale with revenue of less than $500 million, its competitive risks as other satellite operators add capacity and its private equity ownership. However, the agency noted Speedcast benefits from its leading market positions, recurring revenue supported by long-term customer contracts and high renewal rates and good liquidity.

The outlook is stable.

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