Moody’s lowers Ligado

Moody's Investors Service said it downgraded Ligado Networks LLC's corporate family rating to Ca from Caa2 and probability of default rating to Ca-PD from Caa2-PD given limited balance sheet cash of only $28 million as of June 30, 2023 and uncertain prospects for continued additional supplemental liquidity from existing investors.

“Further, Ligado's capital structure is highly untenable given cash commitments through June 30, 2024 totaling over $7.5 billion, including $2.9 billion ($4.2 billion including PIK interest accrued) of 15˝% first-lien notes due Nov. 1, 2023.

“With this action, Moody's also downgraded those 15˝% first lien notes to Caa3 from Caa1 and Ligado's $1 billion ($1.4 billion including PIK interest accrued) second-lien notes due May 1, 2024 to C from Ca,” the agency said in a press release.

The outlook remains negative.

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