Completes new seven-year, $1.275 billion senior secured credit facility and new five-year, $200 million revolving credit facility
WESTMINSTER, Colo. — (BUSINESS WIRE) — December 22, 2016 — DigitalGlobe, Inc. (NYSE: DGI) today announced the completion of its new senior secured credit facility that reduces the interest rate and extends maturities on the company’s debt, with a new seven-year $1.275 billion senior secured credit facility and a new five-year $200 million revolving credit facility. The new term loan matures January 2024 and bears interest according to a leveraged-based pricing grid, initially set at LIBOR plus 275 basis points, with a 75 bps LIBOR floor. The revolving credit facility matures January 2022 and will be undrawn at closing.
Proceeds from the senior secured credit facility will be used to refinance all of the company's existing debt, comprised of its $531 million term loan, $110 million of outstanding revolving borrowings, and $600 million of 5.25% senior notes due February 2021, together with accrued interest, fees, and tender or redemption premium, as applicable.
As of the December 22, 2016 closing date, the company has repaid its existing term loan, revolving borrowings, and $566 million of its 5.25% Senior Notes validly tendered by the consent payment deadline and accepted for payment pursuant to the company’s tender offer which expires on January 4, 2017. Remaining proceeds will be used to purchase any notes validly tendered by the tender offer expiration date and accepted for payment and then to redeem any remaining outstanding notes pursuant to the company’s redemption notice issued on December 22, 2016, together with accrued interest and the applicable make-whole premium.
"We remain pleased with the solid performance of our business and thrilled that favorable market conditions have provided us the opportunity to extend maturities, improve the terms of our debt, and increase the size of our revolver,” said Gary W. Ferrera, DigitalGlobe’s Chief Financial Officer. “With our increased financial flexibility, we are now even better positioned to advance our industry leadership."
DigitalGlobe is a leading provider of commercial high-resolution Earth observation and advanced geospatial solutions that help decision makers better understand our changing planet in order to save lives, resources and time. Sourced from the world's leading constellation, our imagery solutions deliver unmatched coverage and capacity to meet our customers' most demanding mission requirements.
Special note about forward-looking statement
Certain statements contained herein contain forward-looking statements. Forward-looking statements relate to future events or future financial performance. We generally identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or “looks forward to” or the negative of these terms or other similar words, although not all forward-looking statements contain these words. Forward-looking statements are based upon our current expectations and assumptions of future events and are subject to risks and uncertainties that could cause our actual results or performance to differ materially from those indicated by such forward looking statements. Some of the risk and uncertainties that could cause actual results to differ include, but are not limited to: the loss or reduction in scope of any of our primary contracts, or decisions by customers not to exercise renewal options; the availability of government funding for our products and services both domestically and internationally; our ability to meet our obligations under the EnhancedView contract; our reliance on a limited number of vendors to provide certain key products or services to us; breach of our system security measures or loss of our secure facility clearance and accreditation; the loss or damage to any of our satellites; delays in the construction and launch of any of our satellites or our ability to achieve and maintain full operational capacity of all our satellites; loss or damage to the content contained in our ImageLibrary; interruption or failure of our ground systems and other infrastructure; decrease in demand for our imagery products and services; increased competition that may reduce our market share or cause us to lower our prices; changes in political or economic conditions, including fluctuations in the value of foreign currencies, interest rates, energy and commodity prices, trade laws and the effects of governmental initiatives to manage economic conditions; our ability to recruit, hire or retain key employees or a highly skilled and diverse workforce; failure to obtain or maintain required regulatory approvals and licenses; and, changes in U.S. or foreign law or regulation that may limit our ability to distribute our imagery products and services. Additional information concerning these and other risk factors can be found in our filings with the Securities and Exchange Commission, including Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2015.
We undertake no obligation to revise or update any forward-looking statements, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.