Moody's rates Orbcomm loans B3

Moody's Investors Service said it assigned ratings to Orbcomm Inc., consisting of a B3 corporate family rating, B3-PD probability of default rating and B3 ratings to the company's proposed senior secured revolving credit facility and senior secured first-lien term loan.

The outlook is stable.

On April 8, Orbcomm announced that it had agreed to be acquired by GI Partners (sponsor), a U.S.-based investor in data infrastructure businesses, for about $1.1 billion, including net debt.

Net proceeds from a new $360 million senior secured first-lien term loan and about $800 million of common equity contributed by the sponsor, will be used to purchase the company and to pay fees and expenses. A new $50 million senior secured revolving credit facility is not expected to be drawn at close, Moody’s said.

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