Global Eagle becomes guarantor of Emerging Markets’ credit facilities

By Wendy Van Sickle

Columbus, Ohio, Aug. 2 – Global Eagle Entertainment Inc. and some of its subsidiaries entered into joinder agreements on July 27 under which they became guarantors of all outstanding and future debt of Emerging Markets Communications, LLC in respect of two existing credit agreements.

The joinder agreement’s came in connection with Global Eagle’s acquisition of Emerging Markets and pertain to a first-lien credit agreement and a second-lien credit agreement both dated July 1, 2015 with Morgan Stanley Senior Funding, Inc. as administrative agent.

As of closing of the joinder agreements, the outstanding principal amounts of first-lien term loans and first-lien revolving loans were $265.32 million and $28 million, respectively, and there was $6 million of undrawn first-lien revolving loan capacity.

First-lien term loans bear interest at Libor plus 575 basis points, and the first-lien revolving loans bear interest at Libor plus a margin that depends on consolidated first-lien net leverage ratio.

Under the second-lien credit agreement, $92 million of term loan borrowings were outstanding at closing of the joinder agreements. The borrowings bear interest at Libor plus 962.5 bps.

Morgan Stanley Senior Funding, Inc., Citizens Bank, NA and Macquarie Capital (USA) Inc., are the joint lead arrangers and joint bookrunning managers of the credit agreements, and Citizens and Macquarie are the joint syndication agents.

Westlake Village, Calif.-based Global Eagle provides in-flight video content, e-commerce and information services for airlines. Emerging Markets Communications is a Miami-based provider of hybrid global satellite and terrestrial communications.

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