Completes new seven-year, $1.275 billion senior secured credit
facility and new five-year, $200 million revolving credit facility
WESTMINSTER, Colo.--(BUSINESS WIRE)--Dec. 22, 2016--
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
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161222005673/en/
Ashley Chauvin, 212-277-3818
Fred Graffam, 303-684-1692