Orbcomm plans $410 million credit facilities for buyout by GI

By Sara Rosenberg

New York, April 12 – Orbcomm Inc. has received a commitment for $410 million of credit facilities to help fund its acquisition by GI Partners, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Credit Suisse and Jefferies LLC provided the debt commitment.

The facilities consist of a $50 million revolver and a $360 million term loan.

Other funds for the transaction will come from $796.6 million of equity.

Under the agreement, Orbcomm is being bought for $11.50 in cash per outstanding share of common stock. The transaction is valued at $1.1 billion, including net debt.

Closing is expected in the second half of the year, subject to customary conditions, including approval by stockholders and the receipt of required regulatory approvals.

There is a 30-day “go-shop” period that will expire on May 7.

Orbcomm is a Rochelle Park, N.J.-based provider of Internet of Things (IoT) solutions.

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