Orbcomm enters into up to $160 million facilities with Macquarie

By Jennifer Chiou

New York, Oct. 6 – Orbcomm Inc. entered into on Sept. 30 a credit agreement with Macquarie CAF LLC that provides for up to $160 million of loans, according to an 8-K filing with the Securities and Exchange Commission.

There is an initial term loan facility in an aggregate principal amount of up to $70 million, the proceeds of which will be used to repay in full the company’s 9˝% senior secured notes due 2018 and for general corporate purposes.

The agreement also includes an up to $10 million revolver, an up to $10 million initial acquisition facility and an up to $70 million acquisition facility.

The loans will come due in five years from the funding date of the initial term loan facility.

Borrowings bear interest at Libor plus 475 basis points.

The filing noted that the loans will be secured by a first-priority security interest in substantially all of the company’s and its subsidiaries’ assets.

Orbcomm is a Fort Lee, N.J., satellite data communications company.

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