Speedcast plans $175 million add-on term loan for Globecomm purchase

By Sara Rosenberg

New York, Aug. 28 – Speedcast International Ltd. expects to get a $175 million add-on senior secured term loan (BB-) due 2025 to fund its acquisition of Globecomm Systems Inc. and repay some revolving credit facility borrowings, according to a news release.

Globecomm is being bought from HPS Investment Partners LLC and Tennenbaum Capital Partners LLC for an estimated net purchase consideration of $135 million, including expected purchase price adjustments.

Pro forma LTM net debt to EBITDA is expected at 3.3 times for June 2018, including Globecomm contribution to EBITDA and anticipated cost synergies.

Closing is anticipated in the fourth quarter, subject to regulatory approvals and other customary conditions.

Speedcast is an Australia-based provider of remote communication and IT solutions. Globecomm is a Hauppauge, N.Y.-based provider of remote communications and multi-network infrastructure to government, maritime and enterprise sectors.

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