Inmarsat Signs $700 Million Financing Pact With The Export-Import Bank
Inmarsat PLC, a provider of global mobile satellite communications services, said Thursday that it has signed a 12.5-year direct financing agreement with the Export-Import Bank or Ex-Im Bank of the United States to fund the build of the Inmarsat-5 satellites and certain other related capital items.
-Under the agreement Inmarsat may borrow up to $700 million and expects drawings to begin during the second quarter.
-The facility will have a total availability period of 4 years and then be repayable in equal installments over a further 8.5 years.
-Drawings under the facility will incur interest at a fixed interest rate for the life of the loan.
-The Ex-Im Bank facility will rank as a senior secured creditor of Inmarsat Investments Ltd, pari passu with both the existing Senior Credit Facility and EIB Facility, and ahead of the 7.375% Senior Notes due 2017.
-Inmarsat Investments Limited is a direct subsidiary of Inmarsat Group Ltd.
-Shares at 1040 GMT down 1 pence, or 0.2%, at 607 pence, valuing the company at GBP2.80 billion.
-By Razak Musah Baba, Dow Jones Newswires; 44-20-7842-9275; razak.baba@ dowjones.com