Pricing climbs as Ligado outlines $3.85 billion two-part PIK notes; pricing expected Friday

By Paul A. Harris

Portland, Ore., Oct. 15 – Pricing underwent big upward revisions as Ligado Networks LLC detailed its $3.85 billion offering of secured notes, according to market sources.

The revised deal features $2.85 billion of three-year non-callable first-lien PIK notes (Caa1) being marketed with a 15½% all-PIK coupon at par. The deal was announced earlier with guidance of 13%, envisioning a coupon that would be 9% PIK and 4% cash, with a 96 original issue discount.

The revised deal also includes $1 billion of 3.5-year non-callable second-lien PIK notes being marketed with a 17½% all-PIK coupon at 75. The second-lien deal was earlier announced with a tenor of four years and initial guidance that would have set the coupon 300 basis points behind the first-lien notes, at OID 96.

Pricing is expected on Friday.

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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