Orbcomm amends change-of-control provision under credit agreement

By Marisa Wong

Morgantown, W.Va., Oct. 27 – Orbcomm Inc. amended its credit agreement dated Sept. 30, 2014 with Macquarie CAF LLC as administrative agent on Monday, according to an 8-K filing with the Securities and Exchange Commission.

The amendment modifies the definition of change of control to remove a provision that may constitute a “dead hand proxy put.” Under that provision, changes in the composition of the company’s board of directors would have constituted a change of control under the credit agreement.

If any change of control occurs under the credit agreement, each lender would have the right to cancel its commitments and require the company to prepay the loans, together with a fee of up to 1%.

The amendment is in response to recent developments under Delaware law occurring after the date of the original credit agreement, the filing said.

The satellite data communications company is based in Fort Lee, N.J.

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