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ORBCOMM’s New Term Loan Facility Closes and Redeems All Outstanding Senior Secured Notes

December 6, 2020

ORBCOMM Inc. (NASDAQ: ORBC) has entered into a $200 million five-year term loan facility (the “Term Loan”) and a $50 million revolving credit facility. Concurrently, the Company completed the redemption of all of its outstanding 8.00 percent senior secured notes (the “Notes”) and ended its previous $25 million revolver facility.

“As part of the next phase of ORBCOMM’s evolution, we’ve taken actions to strategically improve the Company’s capital structure by replacing the previous high-yield notes with this term loan at a significantly lower interest rate,” said Marc Eisenberg, ORBCOMM’s Chief Executive Officer. “With multiple acquisitions and a comprehensive integration effort behind us, as well as lower interest expense, we are in a great position to execute on our business plan, reduce debt levels and focus on organic growth.”

The Term Loan and revolving credit facility bear interest at LIBOR plus an applicable margin based on the Company’s consolidated net leverage ratio and will mature on December 2, 2025. The proceeds of the Term Loan, together with $20 million from the new revolving credit facility and cash on hand, were used to redeem the Company’s outstanding Notes pursuant to their terms at 104 percent of their principal amount, plus accrued and unpaid interest to, but excluding, December 2, 2020. Upon completion of this redemption, none of the 8.00 percent Notes remained outstanding.

JPMorgan Chase Bank, N.A., acted as Administrative Agent, Lead Arranger and Joint Bookrunner for the financing. Funding was provided through a syndicate of banks.

Additional details regarding the terms of the new facilities are discussed in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission.

Filed Under: Business Moves, Funding, News

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