OneWeb Global seeks approval to obtain $300 million in DIP financing

By Caroline Salls

Pittsburgh, April 13 – OneWeb Global Ltd. requested court approval to obtain $300 million in debtor-in-possession financing, according to a motion filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

The company said the financing would be used to fund its ordinary course operating expenses and a process geared toward the completion of one or more sales of its assets or equity interests.

SoftBank Group Corp., OneWeb’s largest pre-bankruptcy secured creditor, has agreed to serve as the lead lender under the DIP facility, while giving other holders of the company’s 12˝% senior secured promissory notes the opportunity to participate in the facility.

The DIP facility lenders will fund up to $75 million in new-money term loans in four tranches based on the OneWeb debtors achieving specified milestones in the proposed marketing and sale process.

In addition, for every new dollar that a DIP lender funds under the facility, that lender will roll up $3 owed on its notes into additional term loans under the DIP facility.

The DIP facility will allow the company to immediately access $10 million of the proposed financing.

GLAS USA LLC will serve as administrative agent and GLAS Trust Corp. Ltd. as collateral agent.

The financing will mature on March 26, 2021.

The DIP facility will bear interest at a rate of 12˝%, payable in-kind.

A hearing is scheduled for April 24.

Arlington, Va.-based OneWeb develops a constellation of satellites to enable internet access. The company filed bankruptcy on March 27 under Chapter 11 case number 20-22437.

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