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Speedcast International Ltd Enhances Debt Funding Structure 

July 30, 2019

Speedcast International Limited is pleased to announce that it has received majority consent from its Revolving Credit Facility (“RCF”) lenders to amend the ! financial covenant applicable under its Senior Secured Facility. The amendment increases the maximum Net Leverage Ratio (net debt to EBITDA) from 4.0x to 4.5x, and applies from the period ending 31 December 2019 through to, and including, the period ending 31 December 2020.  

The Net Leverage Ratio is the sole financial covenant under Speedcast’s Senior Secured Facility, and applies when drawings under the RCF exceed 35% of the RCF limit. Under the relevant agreements, the Net Leverage Ratio is calculated on a proforma basis and includes the proforma benefits from the Company’s recently announced reorganisation initiatives.  

The maximum Net Leverage Ratio in the financial covenant will reduce from 4.5x back to 4.0x upon payment of any dividends or certain other restricted payments (such as discounted buybacks).  

While the Company does not expect its Net Leverage Ratio to reduce in 2019, it is a key management priority to reduce it in 2020. 

The Board remains confident that Speedcast’s Net Leverage Ratio will be below 4.0x at the end of 2019. The added headroom provided by increasing the maximum Net Leverage Ratio to 4.5x provides greater certainty that the Company will continue to meet its financial covenant and not require additional equity to be raised.