Orbcomm cuts spread on $360 million term loan to Libor plus 425 bps

By Sara Rosenberg

New York, June 16 – Orbcomm Inc. trimmed pricing on its $360 million seven-year covenant-lite first-lien term loan to Libor plus 425 basis points from talk in the range of Libor plus 450 bps to 475 bps, according to a market source.

Also, the original issue discount on the term loan was changed to 99.5 from 99, the source said.

The term loan still has a 0.75% Libor floor and 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.

Recommitments are due at 10 a.m. ET on Thursday, the source added.

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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