S&P: Global Eagle new debt BB-, B-

S&P said it assigned a B+ corporate credit rating to Global Eagle Entertainment Inc.

The agency also said it assigned a BB- rating and 2 recovery rating to the company's proposed senior secured first-lien credit facilities, which include an $85 million revolving credit facility and $460 million first-lien term loan. The 2 recovery rating indicates 70% to 90% expected default recovery.

S&P also said it assigned a B- rating and 6 recovery rating to the company's proposed $125 million senior secured second-lien term loan and existing $83 million senior unsecured convertible notes. The 6 recovery rating indicates 0 to 10% expected default recovery.

The outlook is stable.

The ratings reflect the company’s operations in a fairly narrow telecommunications niche, some degree of revenue concentration with its top customers and the fragmented and competitive nature of the satellite-based connectivity market, S&P said.

These factors are somewhat offset by the company's diverse product portfolio, good revenue visibility provided by multi-year contracts and solid market share in providing in-flight entertainment content, the agency said.

© 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.