| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers D > Headlines for DigitalGlobe, Inc. > News item |
DigitalGlobe intends to sell $500 million senior notes to help fund GeoEye acquisition
By Paul A. Harris
Portland, Ore., Jan. 14 - DigitalGlobe Inc. plans to sell $500 million of senior notes as part of the financing backing its acquisition of GeoEye Inc., according to a market source.
The debt financing also includes a $700 million senior secured credit facility, which is set to launch at a Tuesday morning bank meeting.
The lead arrangers on the credit facility are Morgan Stanley Senior Funding Inc., Bank of Tokyo-Mitsubishi UFJ Ltd., J.P. Morgan Securities LLC and Citigroup Global Markets Inc.
Proceeds will be used to help fund the acquisition of GeoEye and refinance about $1 billion of existing debt.
Other funds for the transaction will come from $500 million of senior unsecured notes, the source added.
Under the agreement, GeoEye shareholders will have the right to elect either 1.137 shares of DigitalGlobe common stock and $4.10 per share in cash, 100% of the payment in cash ($20.27) or 100% of the payment in stock (1.425 shares of DigitalGlobe common stock) per share.
The amount of cash and stock is subject to proration depending upon the elections of GeoEye shareholders, such that the total consideration mix reflects the ratio of 1.137 shares of DigitalGlobe common stock and $4.10 per share in cash.
The total transaction value is around $900 million.
Closing is expected by Jan. 31, subject to regulatory approval from the Federal Communications Commission and the National Oceanic and Atmospheric Administration. Shareowners of both companies have already approved the transaction, and antitrust clearance from the U.S. Department of Justice has been received.
DigitalGlobe is a Longmont, Colo.-based provider of commercial high-resolution earth imagery products and services. GeoEye is a Herndon, Va.-based source of geospatial information and insight for decision makers and analysts.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.