DigitalGlobe cuts spread on $1.28 billion term B to Libor plus 275 bps

By Sara Rosenberg

New York, Dec. 16 – DigitalGlobe Inc. reduced pricing on its $1,275,000,000 seven-year term loan B to Libor plus 275 basis points from Libor plus 300 bps and added a step-down to Libor plus 250 bps when total leverage is 2.75 times, according to a market source.

Also, the original issue discount on the term loan was revised to 99.75 from 99.5, the source said.

The term loan still has a 0.75% Libor floor, 101 soft call protection for six months and a total leverage covenant of 5.5 times with step-downs.

The company’s $1,475,000,000 credit facility (Ba3/BB+) also includes a $200 million revolver.

Barclays is the lead left bookrunner on the deal.

Final commitments were scheduled to be due at 4 p.m. ET on Friday, the source added.

Proceeds will be used to pay down revolver borrowings, to refinance a term loan B due 2020 and 5¼% notes due 2021 and to pay related fees and expenses.

DigitalGlobe is a Westminster, Colo.-based provider of Earth imaging and geospatial solutions.

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