talk Satellite

ViaSat Technologies Limited, has signed a credit agreement for a $525 million direct loan facility from the Export-Import Bank of the United States (Ex-Im Bank). ViaSat Technologies, based in the United Kingdom, will use the funds to finance up to 85% of the construction, launch and insurance costs of the ViaSat-2 high-capacity Ka-band communications satellite, as well as the exposure fees under the facility. ViaSat-2 is being manufactured by The Boeing Company and the launch by SpaceX is scheduled for late summer 2016.

Building on the technological and market success of the ViaSat-1 satellite, which has received multiple awards in recognition of its ground-breaking innovation and service performance, ViaSat-2 is expected to significantly improve the speed and availability of broadband services over a greatly expanded, international coverage area. The service footprint of ViaSat-2 will encompass over 40 countries across North America, Central America, the Caribbean, a small portion of northern South America, and the primary aeronautical and maritime routes across the Atlantic Ocean between Europe and North America. ViaSat-2 is expected to double the bandwidth economics advantage introduced by ViaSat-1, and includes significant enhancements to ViaSat satellite broadband networking technologies that are designed to multiply the speeds offered to a level commensurate with high-speed fiber-to-the-node networks (FTTN).

The Ex-Im Bank facility will be drawn down as progress payments are made to U.S. suppliers and repaid in 17 equal, semi-annual installments beginning approximately 6 months after in-orbit acceptance of ViaSat-2. The interest rate for the facility is fixed and will be set at the time of the first disbursement based on the Ex-Im Bank Commercial Interest Reference Rate in effect at that time. The Ex-Im Bank facility is guaranteed by ViaSat, Inc. and secured by liens on specified assets of ViaSat Technologies (including the ViaSat-2 satellite and related contracts) as well as a pledge of the stock of ViaSat Technologies.

Ex-Im Bank is the official export credit agency of the United States, whose mission is to assist in financing the export of U.S. goods and services to international customers and markets. The bank does not compete with private sector lenders but provides export financing products that fill gaps in trade financing.