Speedcast seeks court approval of $180 million DIP financing package

By Caroline Salls

Pittsburgh, April 24 – Speedcast International Ltd. requested court approval of a commitment for up to $90 million in new-money debtor-in-possession financing from the holders of its outstanding term loan debt, according to a motion filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

Combined with its existing cash flows, Speedcast said the DIP financing will help to ensure it is able to meet its go-forward commitments to all stakeholders throughout its restructuring.

A total of $35 million of the new-money facility is available on an interim basis.

In addition, the company said it is seeking approval of a two-stage “roll-up” of a maximum of $90 million of the $680 million owed under its pre-bankruptcy credit agreement to a second-out position in the DIP facility.

Credit Suisse AG, Cayman Islands Branch will serve as administrative agent, collateral agent and security trustee.

The DIP financing will mature nine months from the date of the company’s bankruptcy filing.

Interest will accrue at the adjusted Base rate plus 700 basis points or Libor plus 800 bps with a 2% Libor floor for the new-money financing and at Libor plus 175 bps for the roll-up facility.

Speedcast is an Australia-based provider of remote communication and IT solutions. The company filed bankruptcy on April 23 under Chapter 11 case number 20-32243.

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