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Macquarie, ORBCOMM Sign $160MM Credit Facility

October 07, 2014, 07:31 AM
Filed Under: Manufacturing

ORBCOMM Inc. has entered into a multi-facility credit agreement providing up to $160 million with Macquarie Group (Macquarie). As part of the credit agreement, ORBCOMM will have access to a $70 million initial term loan facility, a revolving credit facility for up to $10 million as well as acquisition term loan facilities for up to $80 million for potential growth opportunities.

The initial term loan will be used to repay in full the Company’s $45 million, 9.50% fixed rate Senior Secured Notes due in 2018, and the balance will be available for general corporate purposes. The loan facilities have no scheduled principal amortization until the five-year maturity date and will carry an interest rate of LIBOR (floor of 100 basis points) plus a margin of 475 basis points.

“We continue to benefit from our enhanced credit profile to both improve our balance sheet and facilitate our growth strategy, which may include new services, product offerings, geographic distribution and potential acquisitions,” said Marc Eisenberg, Chief Executive Officer of ORBCOMM. “Our prudent capital structure and focus on accretive investments will ensure that we support our growth in a way that creates value for our shareholders.”

Raymond James advised ORBCOMM on the financing. Milbank, Tweed, Hadley & McCloy LLP acted as legal advisor to ORBCOMM.

ORBCOMM is a global provider of Machine-to-Machine (M2M) solutions. Its customers include Caterpillar Inc., Doosan Infracore America, Hitachi Construction Machinery, Hyundai Heavy Industries, I.D. Systems, Inc., Komatsu Ltd., Cartrack (Pty.) Ltd., and Volvo Construction Equipment, among other industry leaders. By means of a global network of low-earth orbit (LEO) satellites and accompanying ground infrastructure as well as our Tier One cellular partners, ORBCOMM’s low-cost and reliable two-way data communication services track, monitor and control mobile and fixed assets in our core markets: commercial transportation; heavy equipment; industrial fixed assets; marine; and h

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