Ligado shopping two-part offering of PIK/cash bullet notes; pricing expected Wednesday

By Paul A. Harris

Portland, Ore., Oct. 5 – Ligado Networks LLC kicked off a two-part offering of high-yield notes on Monday, market sources say.

The deal includes a tranche of PIK three-year first-lien bullet notes with initial guidance of 13% (9% PIK, 4% cash) at OID 96.

It also includes a tranche of four-year PIK second-lien bullet notes with initial guidance that would set the coupon 300 basis points behind the first-lien notes, also at OID 96.

Tranche sizes remain to be determined; however, benchmark amounts are expected.

J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and Jefferies LLC are the bookrunners.

Proceeds from the Rule 144A and Regulation S for life deal will be used to repay the existing first-lien senior secured loan and 1.5-lien loan, to make a $700 million payment to Inmarsat and to fund an escrow account with two years of interest reserve.

Ligado is a Reston, Va.-based satellite communications company.

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