By Sheri Kasprzak
New York, Jan. 12 - OrbImage Holdings Inc. said it has entered into an agreement for a $50 million loan.
The loan was funded by Wingate Capital Ltd.; Deephaven Event Subfund Trading Ltd.; Orion Funding, LLC; and Concordia Distressed Debt Fund, LP.
The loan matures on July 1, 2008 and bears interest at the Eurodollar rate plus an applicable margin with a 3% floor and a 5% ceiling.
The investors also received warrants for 500,000 shares, exercisable at $15.00 each. The warrants expire the earlier of Jan. 10, 2009 or the six-month anniversary of the full repayment of the loan or the redemption of all outstanding series A preferred stock.
Credit Suisse First Boston, LLC was the lead bookrunner for the deal.
Proceeds from the offering will be used to finance a portion of the acquisition by OrbImage SI Opco Inc. of the operating assets of Space Imaging LLC.
Connected to the credit agreement, OrbImage created a new class of preferred stock - the series A preferred stock. The preferreds pay annual dividends at 15%.
Based in Dulles, Va., OrbImage produces digital Earth imagery services through satellites.
| Issuer: | OrbImage Holdings Inc.
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| Issue: | Loan
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| Amount: | $50 million
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| Maturity: | July 1, 2008
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| Coupon: | Eurodollar rate plus margin; 3% floor, 5% ceiling
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| Warrants: | For 500,000 shares
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| Warrant expiration: | The earlier of Jan. 10, 2009 or the six-month anniversary of the full repayment of the loan or the redemption of the outstanding series A preferreds
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| Warrant strike price: | $15.00
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| Bookrunner: | Credit Suisse First Boston, LLC
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| Investors: | Wingate Capital Ltd.; Deephaven Event Subfund Trading Ltd.; Orion Funding, LLC; and Concordia Distressed Debt Fund, LP
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| Settlement date: | Jan. 10
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| Stock symbol: | Pink Sheets: ORBM
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| Stock price: | $9.92 at close Jan. 10
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