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Speedcast International Ltd Announces Pricing of $175 Million Incremental Term Loan 

Sep 27, 2018

Speedcast International Limited has successfully priced the US$175 million incremental term l! oan add-on (the "Incremental Term Loan") to its existing US$425 million US Term Loan B facility (due 2025) (the "Existing Term Loan"). The Incremental Term Loan and the Existing Term Loan will have the same terms, including interest margin, and will be priced at LIBOR plus 2.75% p.a., which is a 0.25% p.a. increase on the current interest margin under the Existing Term Loan.

"This incremental term loan add-on builds on Speedcast's strong relationships with institutional lenders in the US Term Loan B market." said Clive Cuthell, Chief Financial Officer, Speedcast. "The acquisition of Globecomm is a strong fit with Speedcast's strategy to consolidate our industry and build competitive advantages based on scale and capabilities. The incremental debt will be used to complete this synergistic acquisition and enhance our liquidity position."

Speedcast intends to use the proceeds from the Incremental Term Loan to fund the acquisition of Globecomm Systems Inc. for approximately US$135 million(see Note 1 below), to pay fees and transaction expenses and to repay a portion of the loans outstanding under its Revolving Credit Facility ("RCF"), enhancing Speedcast's liquidity position. The Incremental Term Loan will be borrowed on completion of the acquisition which is expected to occur in Q4 2018, subject to customary closing conditions, including regulatory approvals.


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