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DigitalGlobe launches $550 million term B at Libor plus 325-350 bps
By Sara Rosenberg
New York, Jan. 15 - DigitalGlobe Inc. launched its $550 million seven-year term loan B on Tuesday with price talk of Libor plus 325 basis points to 350 bps with a 1% Libor floor and an original issue discount of 991/2, according to a market source.
The loan has 101 soft call protection for one year, the source said.
The $700 million senior secured credit facility also includes a $150 million five-year revolver that is expected to be undrawn at closing.
Commitments are due on Jan. 24.
Morgan Stanley Senior Funding Inc., Bank of Tokyo-Mitsubishi UFJ Ltd., J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are the lead arrangers on the deal.
Proceeds will be used to help fund the acquisition of GeoEye Inc. and refinance about $1 billion of existing debt.
Other funds for the transaction will come from $500 million of senior notes.
Under the agreement, GeoEye shareowners 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 aggregate 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.
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.
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