Global Eagle releases first-, second-lien term loan talk with launch

By Sara Rosenberg

New York, Dec. 7 – Global Eagle Entertainment Inc. came out with price talk on its $460 million seven-year first-lien term loan (Ba3/BB-) and $125 million eight-year second-lien term loan (B3/B-) with its lender call on Wednesday, according to a market source.

The first-lien term loan is talked at Libor plus 525 basis points with a 1% Libor floor and an original issue discount of 98 to 99, and the second-lien term loan is talked at Libor plus 950 bps with a 1% Libor floor and a discount of 98, the source said.

The first-lien term loan has 101 soft call protection for six months and amortization of 1% per annum, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Covenants include a maximum consolidated first-lien net leverage ratio and a maximum total net leverage ratio.

Incremental allowance is the sum of $75 million and an unlimited amount subject to, with respect to any first-lien incremental facility, closing date first-lien net leverage, with respect to any secured incremental facility, closing date secured net leverage, and, with respect to any unsecured incremental facility 5 times total net leverage.

Mandatory prepayments are from excess cash flow, 100% of cash proceeds from non-ordinary course asset and dispositions subject to customary reinvestment rights, and 100% of cash proceeds from debt issuances other than permitted debt, the source continued.

The company’s $670 million senior secured credit facility also provides for an $85 million five-year revolver (Ba3/BB-).

Citigroup Global Markets Inc. and Macquarie Capital (USA) Inc. are the joint lead arrangers on the deal.

Commitments are due on Dec. 16, the source added.

Proceeds will be used to refinance a roughly $265 million first-lien term loan, a roughly $92 million second-lien term loan and about $39 million in revolver borrowings at Emerging Markets Communications LLC, and for working capital, capital expenditures, acquisitions, investments and general corporate purposes.

Global Eagle is a Marina Del Rey, Calif.-based provider of satellite-based connectivity and media.

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