DigitalGlobe tenders for any and all $355 million 10½% secured notes

By Jennifer Chiou

New York, Sept. 21 - DigitalGlobe announced the start of a tender offer for any and all of its $355 million of 10½% senior secured notes due 2014.

The company is also soliciting consents to authorize the elimination of most of the restrictive covenants and some of the events of default contained in the note indenture and the appointment of a new collateral agent under the security documents governing the notes.

The consent deadline is 5 p.m. ET on Oct. 4, and the offer is set to end at midnight ET on Oct. 19.

Holders who tender their notes must deliver consents and vice versa.

For each $1,000 principal amount, the company will pay a purchase price equal to the sum of the present value of $1,052.50 on May 1, 2012, the redemption date, and the present value of the interest that would accrue with respect to that date determined using the yield to maturity of the 1% Treasury due April 30, 2012 plus 50 basis points, minus the accrued interest from the most recent interest payment date for the notes to Oct. 7. The total payout includes a consent payment of $30.00 per $1,000 principal amount.

DigitalGlobe said it will also pay accrued interest to the settlement date.

Initial settlement is slated for Oct. 7.

Proceeds from the company's proposed $600 million senior secured credit facility will be used to fund the tender offer and for general corporate purposes, including stock repurchases and acquisitions.

The offer is subject to completion of the new debt financing and a majority of notes being tendered.

The depositary is U.S. Bank NA, and the information agent is i-Deal, LLC (888 593-9546 or call collect 212 849-5000).

The dealer managers are Morgan Stanley (800 624-1808 or call collect 212 761-1057) and J.P. Morgan (800 245-8812 or call collect 212 270-1200).

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

© 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.