DigitalGlobe Enters Into New $600 Million Credit Facility
October 12 2011 - 4:02PM
Marketwired
DigitalGlobe (NYSE: DGI), a leading global provider of
high-resolution earth imagery solutions, today announced that it
has entered into a senior secured credit agreement that provides
for a $500 million term loan facility and a $100 million revolving
credit facility.
The company has borrowed the full amount of the term loan
facility to fund its previously announced cash tender offer to
purchase any and all of its outstanding 10.5% Senior Secured Notes
due 2014 and related consent solicitation. Holders of 100% of the
Notes had tendered and not validly withdrawn their notes in the
cash tender offer as of 5:00 p.m., New York City time, on October
11, 2011.
The Company will use remaining cash proceeds for general
corporate purposes, which may include acquisitions and share
repurchases. The revolving credit facility remains undrawn at
closing.
Borrowings under the term loan facility will bear interest at an
amount equal to the adjusted LIBOR rate plus 4.50%. The credit
agreement contains affirmative and negative covenants that the
company believes are usual and customary for a senior secured
credit agreement. The credit agreement also requires the company to
maintain a maximum leverage ratio and a minimum interest coverage
ratio.
"We are very pleased to have executed and priced this
transaction given the current volatile market conditions," said
Yancey Spruill, chief financial officer. "Financing at a lower cost
of capital is a testament to the quality of our company and the
strength of our business model. We will use the proceeds to provide
increased flexibility in executing our growth strategy and in
building our capabilities through acquisitions."
Morgan Stanley Senior Funding, Inc. and J.P. Morgan Securities
LLC served as joint lead arrangers and joint lead bookrunners for
this transaction.
About DigitalGlobe DigitalGlobe is a
leading global provider of commercial high-resolution earth imagery
products and services. Sourced from our own advanced satellite
constellation, our imagery solutions support a wide variety of uses
within defense and intelligence, civil agencies, mapping and
analysis, environmental monitoring, oil and gas exploration,
infrastructure management, Internet portals and navigation
technology. With our collection sources and comprehensive
ImageLibrary (containing more than one billion square kilometers of
earth imagery and imagery products) we offer a range of on- and
off-line products and services designed to enable customers to
easily access and integrate our imagery into their business
operations and applications. For more information, visit
www.digitalglobe.com.
DigitalGlobe is a registered trademark of DigitalGlobe.
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number of important factors could cause our actual results or
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forward looking statements, including: the loss, reduction or
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impairment of our satellites; delays in the construction and launch
of WorldView-3; delays in implementation of planned ground system
and infrastructure enhancements; loss or damage to the content
contained in our ImageLibrary; interruption or failure of our
ground system and other infrastructure, decrease in demand for our
imagery products and services; increased competition that may
reduce our market share or cause us to lower our prices; our
failure to obtain or maintain required regulatory approvals and
licenses; changes in U.S. foreign law or regulation that may limit
our ability to distribute our imagery products and services; the
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Securities and Exchange Commission, including our Annual Report on
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statement to reflect events or circumstances after the date on
which the statement is made or to reflect the occurrence of
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