Orbcomm talks $360 million term loan at Libor plus 450-475 bps

By Sara Rosenberg

New York, June 7 – Orbcomm Inc. launched on Monday its $360 million seven-year covenant-lite first-lien term loan with price talk of Libor plus 450 basis points to 475 bps with a 0.75% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months.

The company’s $410 million of credit facilities (B3/B) also include a $50 million revolver.

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

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

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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