Space Business Review - October 2014

A monthly round-up of space industry developments for the information of our clients and friends.

ORBCOMM $160M CREDIT FACILITIES

On October 6, ORBCOMM Inc., a global provider of Machine-to-Machine (M2M) solutions, announced that it entered into a multi-facility Credit Agreement providing up to $160m with Macquarie Group Limited. Under the Credit Agreement, ORBCOMM will have access to a $70m initial term loan facility, a revolving credit facility of up to $10m and acquisition term loan facilities worth up to $80m. All of the facilities have a five-year maturity from the funding date and carry interest at the rate of 475 basis points over LIBOR without a scheduled principal amortization. ORBCOMM plans to use the proceeds from the initial term loan to repay in full its $45m, 9.50% fixed rate Senior Secured Notes due 2018 and for general corporate purposes and the proceeds from the other two facilities to fund potential acquisitions.