DigitalGlobe launches credit facility amendment to investors

By Sara Rosenberg

New York, Dec. 9 – DigitalGlobe Inc. launched on Wednesday an amendment to its credit facility that would increase term loan pricing by 50 basis points and revise the incremental allowance, excess cash flow sweep and restricted payments basket, according to a market source.

The incremental would change to a $250 million free and clear allowance plus amounts up to 2.75 times secured leverage from $250 million total with a 2.75 times senior secured leverage test, the source said.

And, the excess cash flow sweep would step-down from 50% to 25% at 4.25 times leverage, instead of at 3.5 times leverage, and to 0% at 4 times leverage, instead of at 3 times leverage.

The amendment would also reset the 101 soft call protection on the term loan for six months, the source continued.

Lenders are offered a 12.5 bps amendment fee and consents are due on Tuesday.

J.P. Morgan Securities LLC is leading the deal.

DigitalGlobe is a Westminster, Colo.-based provider of commercial high-resolution earth imagery products and services.

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