Orbcomm readies launch of $360 million term loan for Monday

By Sara Rosenberg

New York, June 4 – Orbcomm Inc. is set to hold a lender call at noon ET on Monday to launch a $360 million seven-year covenant-lite first-lien term loan, according to a market source.

Credit Suisse Securities (USA) LLC, Jefferies LLC, Truist and Citizens Bank are the lead arrangers on the deal.

The term loan has 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on June 17.

Based on the commitment letter, the company is also expected to get a $50 million revolver.

Proceeds will be used to help fund the buyout of the company by GI Partners for $11.50 in cash per outstanding share of common stock. The transaction is valued at $1.1 billion, including net debt.

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

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.

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

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